NuScale Power (SMR) saw its stock plummet by 8.52% during intraday trading on Friday, as concerns persisted over the company's ability to scale up its small modular reactor (SMR) business amidst ongoing challenges.

NuScale has been a divisive stock for investors since its public debut, with bulls impressed by the disruptive potential of its SMR technology, which can be deployed in areas unsuitable for traditional nuclear reactors. The company's SMRs are designed to be modular, pre-fabricated, and assembled on-site, potentially reducing costs and deployment times.

However, the bears have remained skeptical, citing NuScale's high valuation and the capital-intensive nature of its business. The company has faced setbacks, including cancellations of planned reactor constructions due to soaring expenses, workforce reductions, and an SEC probe over its employment practices. Short-sellers have also raised doubts about NuScale's growth potential and the timeline for regulatory certifications.

Despite these challenges, NuScale's longer-term prospects remain promising if it can maintain its first-mover advantage in the SMR market, secure expected NRC certifications for its higher-capacity reactors, and capitalize on potential government funding for clean energy initiatives. However, a significant portion of optimism seems already priced into the stock, suggesting a cautious approach may be warranted for investors.