Key Stats:
- Today’s Price Change: -12.5%
- Current Share Price: $120
- 52-Week High: $307
- Year-to-Date Performance: -36%
- 5-Year Return: $1,000 invested in FSLR stock 5 years ago would be worth $2,880 today
What Happened?
First Solar (FSLR) shares plunged 12% after the solar panel manufacturer drastically cut its 2025 forecast due to tariff-related uncertainties.
The clean energy company slashed its annual revenue guidance to a range of $4.5 billion to $5.5 billion, down from its previous projection of $5.3 billion to $5.8 billion.
More concerning for investors, First Solar reduced its full-year earnings forecast to $12.50-$17.50 per share, well below its earlier guidance of $17-$20 per share.
The FSLR stock decline comes as U.S. solar manufacturers face multiple headwinds, including tepid demand, high borrowing costs, and policy uncertainty under the Trump administration.
While Trump’s tariffs could potentially benefit First Solar’s U.S. operations, its facilities in Vietnam, Malaysia, and India face significant tariff exposure. First Solar also lowered its selling volume forecast to 15.5-19.3 GW from the previously projected 18.0-20.0 GW.
What the Market Is Telling Us
The steep sell-off in FSLR stock signals that investors are recalibrating their expectations for the solar industry amid the new tariff landscape.
Despite CEO Mark Widmar’s assurance that “the long-term outlook for solar demand, particularly in our core U.S. market, remains strong,” the market is focused on near-term challenges.
The revised guidance suggests that First Solar’s international operations, which represent a significant portion of its manufacturing footprint, will be more severely impacted by tariffs than initially anticipated.
Investor sentiment on trading platforms quickly shifted from bullish to bearish following the announcement, reflecting growing concerns about the solar sector’s ability to navigate the current policy environment.
The company’s plan to “carefully consider production volumes” in Malaysia and Vietnam while pivoting Indian production toward domestic markets underscores the strategic adjustments that are necessary for the company to make in this challenging trade climate.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
