First Solar Shares Drop 1.37% Amid 154th Liquidity Rank as $330M South Carolina Expansion Aims to Boost U.S. Production

Market Snapshot

On November 14, 2025, , closing at $256.23. , ranking it 154th in terms of liquidity among U.S. equities. This drop followed mixed earnings results, . , citing contract terminations and supply chain challenges.

Key Drivers

Strategic Expansion and Policy Tailwinds

First Solar announced a $330 million investment in a new manufacturing facility in Gaffney, South Carolina, set to begin operations in the second half of 2026. The facility will increase the company’s U.S. , . This expansion aligns with the One Big Beautiful Bill Act, signed into law in July 2025, which incentivizes domestic energy technology production and compliance with Foreign Entities of Concern (FEOC) guidelines. The plant will transform thin-film solar cells from First Solar’s international operations into finished modules, reducing reliance on foreign supply chains and mitigating tariff risks.

The facility is projected to create over 600 jobs, with an average salary of $74,000 per year—approximately double Cherokee County’s per capita income. South Carolina Governor praised the investment as a catalyst for local economic growth and energy independence. First Solar’s CEO, , emphasized the strategic importance of the move, noting the need to respond swiftly to trade policies and domestic demand for compliant solar technology.

Financial and Operational Updates

Despite the strategic optimism, First Solar’s recent quarterly results highlighted operational headwinds. The company reported a 38% gross margin, down from 46% in the prior quarter, due to a bottleneck in its Alabama facility and underutilization charges. However, it offset some of these challenges by monetizing tax credits under the 45X program, securing $775 million in proceeds—$573 million of which will be received by year-end. This cash flow provides financial flexibility for growth without relying on debt.

The company’s U.S. production footprint now includes three vertically integrated facilities in Ohio, one each in Alabama and Louisiana, and R&D centers in Ohio and California. Since 2019, First Solar has invested approximately $4.5 billion in American manufacturing and R&D infrastructure, positioning itself as the largest solar technology manufacturer in the Western Hemisphere. Its 53.7 GW backlog, , reflects strong demand, though recent contract terminations and supply chain disruptions have pressured near-term guidance.

Market Implications and Analyst Perspectives

The stock’s 1.37% decline on November 14 occurred despite the new South Carolina facility announcement, as investors weighed near-term challenges against long-term potential. Analysts remain divided: Mizuho reduced its price target to $278 from $335, citing guidance cuts, while Jefferies and Goldman Sachs maintained Buy ratings with targets of $269 and $316, respectively. The latter highlighted First Solar’s proprietary (CdTe) technology, which offers higher efficiency in high-heat environments and full U.S. production capabilities, differentiating it from peers reliant on Asian supply chains.

The company’s ability to secure high-margin contracts—such as U.S. , . However, delays in the South Carolina plant’s timeline or slower-than-expected renegotiation of terminated contracts could dampen 2026 margins. Analysts also noted that First Solar’s positive cash flow position, , provides a buffer against market volatility.

In summary, while First Solar faces short-term operational and guidance challenges, its strategic investments in U.S. manufacturing, favorable policy tailwinds, and strong backlog position it for long-term growth. The market’s mixed reaction underscores the balance between immediate hurdles and the company’s potential to capitalize on the domestic solar energy supercycle.