First Solar (FSLR) Plunges 1.58% Amid Senate Tax Credit Phase-Out Plan

The share price of First Solar (FSLR) fell to its lowest level since September 2025 on Monday, with an intraday decline of 1.74%. The stock closed down 1.58%, marking a significant drop amid ongoing market volatility and policy uncertainties.

Recent analyst activity has been a mixed signal for the stock. Despite several firms upgrading FSLR to “Buy” or “Overweight” ratings in late September, institutional investors displayed cautious behavior. Deutsche Bank and BMO Capital reaffirmed bullish stances, while others like Granahan Investment Management and Renaissance Technologies adjusted their holdings. However, some firms, including DNB Asset Management, reduced their stakes, reflecting diverging sentiment.

Strategic developments provided some support. First Solar expanded its 8GW partnership with Longroad Energy, including a new 2GW solar panel order, and announced a $1.1 billion manufacturing facility in Louisiana. These moves underscored the company’s focus on domestic production and long-term contracts. The CEO also emphasized the need for stronger U.S. trade policies to counter declining solar module prices, aligning with the firm’s strategic goals.

Policy risks, however, emerged as a critical headwind. A Senate draft bill proposing to phase out solar and wind tax credits by 2028 triggered a sharp sell-off. The legislation threatened to eliminate tax credit transferability for residential solar projects and reduce support for rooftop solar—a key segment for First Solar. Analysts warned of potential revenue risks, with some revising price targets downward amid heightened regulatory uncertainty.

Market dynamics further compounded the pressure. The stock traded 50% below its June 2024 highs, with technical indicators showing deteriorating momentum. Institutional investors and analysts highlighted the company’s vulnerability to policy shifts and its reliance on U.S. federal support. While operational progress, including new projects and partnerships, remains positive, the broader industry faces sector-wide volatility due to supply chain challenges and shifting policy priorities.