T1 Energy (TE) Surges 12.46% on Solar Expansion and Political Momentum – Is This the Start of a Green Energy Bull Run?

Summary
• T1 Energy (TE) rockets 12.46% intraday, trading at $6.77 as of 17:38 ET on 2025-12-19
• Company announces Texas solar cell fabrication facility and VP JD Vance meeting sparks investor optimism
• Technicals show bullish momentum with RSI at 66.6 and MACD crossing above signal line
• Options chain sees heavy volume in January 2026 $7 calls, signaling speculative bets on continuation

T1 Energy’s explosive move reflects a confluence of strategic infrastructure progress and political tailwinds. The stock’s 12.46% surge—its largest intraday gain since the name change from FREYR—has pushed it closer to its 52-week high of $7.04. With the stock trading at 113% of its 200-day moving average and options volatility spiking to 125%+ levels, the market is pricing in a sharp re-rating of the company’s solar manufacturing ambitions. This analysis unpacks the catalysts, technical setup, and options strategies for navigating this high-volatility environment.

Solar Expansion and Political Engagement Drive Sharp Rebound
T1 Energy’s 12.46% intraday surge is directly tied to two key developments. First, the company announced the start of construction on its Austin, Texas solar cell fabrication facility, a $140 million project expected to boost domestic production capacity by 300% by Q2 2026. Second, CEO engagement with Vice President JD Vance’s energy transition team has fueled speculation about potential federal incentives for the company’s solar module technology. These catalysts have reignited investor confidence after months of volatility, with the stock now trading at 112% of its 52-week low of $0.92. The move aligns with broader green energy sector momentum, as evidenced by First Solar’s 1.51% intraday gain.

Electrical Equipment & Parts Sector Gains Steam as Green Energy Plays Outperform
The Electrical Equipment & Parts sector is showing renewed strength, with T1 Energy’s 12.46% move outpacing peers like Eos Energy (EOSE, +6.5%) and Enovix (ENVX, +1.61%). The sector’s 2.31 price-to-sales ratio remains attractive relative to the S&P 500’s 1.8x, while T1’s 13.19 price-to-book ratio suggests undervaluation against its expanded production plans. The sector leader, First Solar (FSLR), has gained 1.51% today, reinforcing the narrative that policy-driven solar infrastructure spending is a key driver of near-term momentum.

Options Playbook: Capitalizing on T1 Energy’s Volatility with Gamma-Driven Calls
• 200-day MA: $2.16 (well below current price)
• RSI: 66.6 (neutral to overbought)
• MACD: 0.552 (bullish crossover)
• Bollinger Bands: $2.43–$7.22 (price near upper band)
• Implied Volatility: 125%–140% (elevated)

T1 Energy’s technicals suggest a continuation of its bullish trend, with key resistance at $7.04 (52-week high) and support at $4.83 (20-day MA). The stock’s 5.89% turnover rate and 1.62 beta indicate high liquidity and volatility, making it a prime candidate for gamma-driven options strategies. Two top options from the chain stand out:

• TE20260116C7 (Call, $7 strike, Jan 16 2026):
- Implied Volatility: 125.51% (high)
- Delta: 0.53 (moderate sensitivity)
- Gamma: 0.1667 (strong price sensitivity)
- Theta: -0.0202 (moderate time decay)
- Turnover: $107,773 (high liquidity)
- Leverage Ratio: 7.93% (moderate)
- Payoff at 5% upside ($7.10): $0.10/share
This contract offers a balanced risk-reward profile, with high gamma to benefit from continued price momentum and sufficient liquidity for entry/exit.

• TE20260220C6 (Call, $6 strike, Feb 20 2026):
- Implied Volatility: 126.10% (high)
- Delta: 0.69 (high sensitivity)
- Gamma: 0.0989 (moderate price sensitivity)
- Theta: -0.0116 (lower time decay)
- Turnover: $24,641 (solid liquidity)
- Leverage Ratio: 3.85% (moderate)
- Payoff at 5% upside ($7.10): $1.10/share
This contract provides higher delta exposure for aggressive bulls, with lower theta decay making it suitable for longer-term holding.

Trading Insight: Aggressive bulls should consider TE20260116C7 for a short-term gamma play, while TE20260220C6 offers a more conservative, time-insensitive position. Both contracts benefit from the stock’s current trajectory toward $7.04.

Backtest T1 Energy Stock Performance
The backtest of the performance of the TE after a 12% intraday increase from 2022 to now shows favorable results. The 3-Day win rate is 61.86%, the 10-Day win rate is 60.82%, and the 30-Day win rate is 71.13%. Additionally, the maximum return during the backtest period was 60.16%, which occurred on day 59.

Green Energy Momentum Intact – Position for $7.04 Breakout or $4.83 Reversal
T1 Energy’s 12.46% surge reflects a perfect storm of strategic execution (Texas solar fab) and political alignment (Vance engagement). The stock’s technicals—RSI at 66.6, MACD above zero, and Bollinger Bands near upper boundary—suggest the move is far from over. However, the 125%+ implied volatility in options indicates the market is pricing in significant uncertainty. Investors should monitor the $7.04 52-week high as a critical breakout level, with a breakdown below $4.83 (20-day MA) signaling a potential reversal. For context, sector leader First Solar (FSLR) gained 1.51% today, reinforcing the sector’s strength. Action Plan: Buy TE20260116C7 for a short-term gamma play if $7.04 is breached, or short-term puts if $4.83 fails to hold.