First Solar Shares Fall 0.46% on Production Disruptions, Contract Cuts, and Policy Headwinds

First Solar Inc. shares hit their lowest level so far this month, with an intraday drop of 2.23%, as the stock closed down 0.46% on 04/Nov. The decline marked a reversal from the 15% surge following its October 30 earnings report, which highlighted a new U.S. manufacturing facility and strong quarterly results.

The company’s recent performance reflects a mix of strategic progress and market volatility. First Solar announced a 3.7 GW U.S. solar module finishing line during its Q3 2025 earnings call, aligning with its goal to expand domestic production under U.S. clean energy policies. The facility, set to operate in Q4 2026, is expected to boost tax credit eligibility and supply chain resilience. However, Q3 production faced temporary disruptions at its Alabama factory due to glass supply chain issues, reducing output by 200 MW. Meanwhile, the company curtailed output at Malaysia and Vietnam plants amid lower demand and terminated 6.6 GW multi-year contracts with BP affiliates, signaling a shift toward profitability and liquidity.

Investor sentiment has fluctuated amid these developments. While the October earnings report drew institutional buying, including a 126.9% stake increase by TD Private Client Wealth LLC, insider sales by CEO Mark Widmar added uncertainty. First Solar also revised its 2025 guidance downward, citing contract terminations and trade policy headwinds, including U.S. investigations into solar imports. Despite these challenges, the firm remains positioned to benefit from domestic content incentives and its leadership in cadmium telluride technology. Long-term optimism persists, with 54.5 GW of order backlog through 2030 and a strategic focus on U.S. policy tailwinds, though short-term volatility is likely to continue as supply chain and regulatory risks evolve.