When Trump's tariffs bring serious headwind
Chuck Smith monitored the manufacturing process of the 6-series solar panels while on October 6, 2021 at its first solar power plant in Walbridge, Ohio.
Dane Rhys | Reuters
The first solar energy Stocks plummeted Wednesday after CEO Mark Widmar said the scale and depth of President Donald Trump's tariffs were unexpected and brought “huge economic headwinds” to the company's manufacturing facilities.
Weedmar said Trump’s new trade policy was a possibility, but the president’s tariffs posed earlier this month “posed significant challenges to 2025 for 2025, which are not clear at the beginning of the year.”
By 9:31 a.m. ET, First Solar shares traded about 11% lower. So far, the stock has fallen by about 20%.
First Solar Energy is the largest, publicly traded manufacturer of solar modules in the United States. Wall Street analysts have viewed First Solar as the best company in the solar industry for weather tariffs as it has invested in manufacturing facilities in the U.S.
Analysts at Keybanc, Oppenheimer and Jefferies lowered their first stock Solar stock down after the company reported its first-quarter financial results Tuesday afternoon.
First Solar Stock Performance
Widmar said Trump's tariffs “had a significant economic headwind for the first solar plants in India, Malaysia and Vietnam.” He said facilities in Malaysia and Vietnam are dedicated to serving the U.S. market, while locations in India serve South Asia and North America. The first solar energy may have to be reduced or idle in factories in Malaysia and Vietnam. He said.
Vidma said uncertainty about whether Trump’s tariffs will remain 10% or increase or increase after the president’s 90-day pause “provokes the exact tariff rate that quantifies the second half of the year and beyond.”
First, solar cuts full-year forecasts for tariffs on Trump, and the company now estimates earnings per share of $1.250 to $1.750, with revenue of $4.5 billion, to $5.5 billion. The upper end of the guide expects 10% tariffs to remain in place this year as of this year. First of all, Solar previously expected earnings per share of $17 to $20 per share in 2025, with sales of $5.3 billion to $5.8 billion.
Vidma said the outlook for long-term solar demand is strong as U.S. first solar power demand continues to rise, which is lobbying Congress and the Trump administration to maintain manufacturing tax credits under the Lower Inflation Act.