Canadian Solar Plunges 12.38% Amid IRA Tax Credit Uncertainty

On May 22, 2025, Canadian Solar's stock price plummeted by 12.38% in pre-market trading, marking a significant decline for the renewable energy company.

The recent drop in Canadian Solar's stock price can be attributed to the political tensions surrounding the Inflation Reduction Act (IRA) tax credits. Conservative Republican lawmakers have expressed their intention to end these tax credits sooner than anticipated, which has caused uncertainty and concern among investors in the solar energy sector.

Additionally, the U.S. International Trade Commission (ITC) has ruled that solar cell and module imports from Southeast Asia are injuring the domestic industry. This decision has led to the imposition of tariffs as high as 3,521% on these imports, further complicating the market dynamics for solar energy companies like Canadian Solar.

These developments have collectively contributed to the recent volatility in Canadian Solar's stock price, as investors grapple with the potential impact on the company's financial performance and market position.