Core Thesis - Solaris Energy Infrastructure, Inc. (SEI) has experienced significant stock price appreciation, nearly quadrupling in the past year due to a strategic pivot towards AI-linked infrastructure following a $200 million acquisition [2][6] - However, the company's business model is showing signs of distress, particularly due to its reliance on a single customer, xAI, and the commoditized nature of its power rental segment [2][3] Company Performance - As of September 3rd, SEI's stock was trading at $26.98, with a trailing P/E ratio of 45.73 [1] - The power rental segment is facing challenges as xAI has removed most of SEI's turbines and plans to idle the remaining ones, which raises concerns about capacity expansion claims [3][4] Financial Outlook - Industry experts predict that if idling continues and no new customers are acquired, SEI's EBITDA could decline to $200 million by 2026, significantly below the consensus estimate of $363 million, leading to an EPS of approximately $0.50 [5] - The stock is currently trading at around 40 times forward earnings and 6 times tangible book value, reflecting aggressive expectations for future earnings growth [4] Competitive Landscape - The mobile power rental market is becoming increasingly crowded, with competitors like Fortress and Atlas Energy entering the space, which may exacerbate the challenges faced by SEI [4] - SEI's management history and inconsistent disclosures raise further concerns about the company's operational stability and transparency [4]