Enphase Energy Stock Plummets 24% Weekly Amid Tax Incentive Cuts and Market Sell-Off

On May 23, 2025, Enphase Energy (ENPH) saw a trading volume of $400 million, marking a 66.49% decrease from the previous day. The stock price rose by 4.30%.

Enphase Energy's stock price experienced a significant decline due to the passage of a GOP bill that ended certain tax incentives, which negatively impacted the company's financial outlook. This legislative change led to a sharp sell-off in the afternoon session, reflecting investor concerns over the potential impact on Enphase's revenue and profitability.

The broader market conditions, particularly the tech sector, also played a role in the stock's decline. Despite product expansions and innovations, the overall market sentiment remained bearish, contributing to the 24% weekly decline in Enphase's share price. The company's reliance on tax incentives and the broader economic environment posed challenges to its stock performance.

Additionally, the passage of President Donald Trump's tax and spending bill further exacerbated the situation. The bill's advancement in the House of Representatives led to a sharp decline in solar stocks, including Enphase Energy. The combination of legislative changes and market conditions created a challenging environment for the company, impacting its stock price and investor sentiment.