First Solar, Enphase lead sector losers as Trump escalates renewable energy criticism
Market Decline for Solar Companies: First Solar and Enphase Energy experienced significant stock declines of 6.8% and 4.6%, respectively, following President Trump's criticism of solar and wind projects and his announcement of a blockade on new initiatives.
Trump's Critique of Renewable Energy: In his remarks, Trump referred to renewable energy as the "scam of the century," blaming it for rising energy costs in certain states and calling for the elimination of what he termed corrupt "green slush funds."
Counterclaims from Industry Leaders: Jason Grumet, CEO of American Clean Power, challenged Trump's assertions, providing data that showed states with high renewable energy usage actually experienced lower electricity prices compared to those with less renewable energy.
Other Solar Stocks Impacted: Several other solar companies, including Sunrun and Solaredge Technologies, also saw substantial stock price drops, while Canadian Solar's stock plummeted 18.8% after disappointing earnings and a lower-than-expected revenue outlook.
Recommendation Rating: Caution Advised
On Thursday, First Solar (NASDAQ:FSLR) and Enphase Energy (NASDAQ:ENPH) were among the leading decliners on the S&P 500, experiencing declines of 6.8% and 4.6%, respectively. This downturn followed President Trump's outspoken criticism of solar companies, where he pledged not to grant any approvals for solar and wind projects during his administration. This statement marks the first time he explicitly indicated a blockade against new solar initiatives.
In his remarks, Trump attributed soaring electricity and energy costs in states dependent on renewable energy to solar and wind power. He labeled renewable energy as the "scam of the century" and announced that the Environmental Protection Agency (EPA) would abolish "green slush funds" plagued with mismanagement and waste.
In response, Jason Grumet, CEO of American Clean Power, contested Trump’s claims, stating that "the four states with the highest renewable power generation actually saw their prices decrease this year, whereas the ten states with the least renewable energy have all experienced price hikes."
Other solar companies that faced significant drops include Sunrun (RUN) down 7.3%, Solaredge Technologies (SEDG) falling 7.2%, Array Technologies (ARRY) decreasing by 6.5%, and Shoals Technologies (SHLS) declining 6.4%.
Additionally, Canadian Solar (CSIQ) plummeted by 18.8%, reaching its lowest point in two months. This drop followed the company's announcement of Q2 earnings and revenue results that fell short of expectations, coupled with a Q3 revenue forecast that was below analyst predictions.