Key Factors Why U.S. Solar Stocks Got Slaughtered Yesterday


In the April 21 trading session, solar stocks took a beating, with Enphase Energy (NASDAQ:ENPH) and SolarEdge Technologies (NASDAQ:SEDG) leading the declines with -12.3% and -9.6%, respectively. The collapse appears to be caused, among other things, by the US Department of Commerce.

The decisions taken by the ministry seem to have pulled the rug out from under the solar stocks and, what is stranger, the the decisions appear to run counter to President Biden’s climate goals. As a result of this decision, 231,000 Americans and 10,000 businesses in the US solar industry are affected.

Essentially, retroactive tariffs of 50-200% would be imposed on solar panels imported from four Southeast Asian countries, which account for about 80% of panel imports into the United States.

sea ​​of ​​red

Solar stocks have plunged all over the place in recent trading sessions, with three-quarters of solar companies already saying their deliveries were affected when the survey was announced.

NextEra Energy (NYSE:NEE) in their investor presentation claimed yesterday that 2.8 GW of solar storage projects would be delayed for at least a year due to these decisions. Additionally, the company announced losses of $1.77 billion as natural gas prices rose during this period.

Other solar stocks such as FTC Solar (NASDAQ: FTCI) were hit by demotions by notable analysts who claimed to have seen a slowdown even before the rate announcement.

Some solar stocks were trading at a premium due to the projected explosive earnings growth expected by market participants. Another tailwind has been added by the zero-carbon policies of the Biden administration.

As inflation picks up and the Federal Reserve (Fed) announces rate hikes, high-growth stocks will certainly come under pressure. The tariffs further embellished the problems solar companies are currently facing with more potential share price losses expected in the near term.

Investors are advised to follow the evolution of tariffs and profits of solar companies before deciding to launch.

Warning: The content of this site should not be considered investment advice. The investment is speculative. When you invest, your capital is at risk.


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