First Solar shares declined 6.7% to close at $218.73 on Friday, with trading volume exceeding twice its 50-day average. The stock swung between $239.57 and $214.85 during the session, ending the week under pressure.
Competitive Pressure from Tesla
The sell-off coincided with news that Tesla is accelerating hiring efforts to support CEO Elon Musk's target of establishing 100 gigawatts of solar manufacturing capacity in the United States by the end of 2028. While Tesla executives described the initiative as ambitious, some analysts view the goal as aspirational for the near-term domestic supply chain.
Market and Policy Context
First Solar's drop contrasted with strong gains in major indices; the S&P 500 rose 1.97% and the Dow Jones Industrial Average added 2.47%. The decline also came amid heightened volatility in the U.S. solar sector, driven by policy uncertainty and competitive dynamics. Notably, the federal tax credit for residential rooftop solar installations is scheduled to expire after 2025.
First Solar, which focuses on utility-scale thin-film solar modules, is set to release its fourth-quarter and full-year 2025 financial results after the market closes on Tuesday, February 24. The report will include crucial guidance for 2026, which investors will scrutinize for signs of how competitive and policy pressures may impact future performance.
