First Solar inventory plunges as CEO says Trump price lists pose ‘significant economic headwind’

First Solar stocks plunged Wednesday, after CEO Mark Widmar stated the size and intensity of President Donald Trump‘s price lists had been sudden and pose a “significant economic headwind” to the corporate’s production amenities.

Widmar stated the implementation of recent business insurance policies through Trump used to be seen through First Solar as an opportunity, however the price lists imposed through the president previous this month have “introduced significant challenges to 2025 that were not known at the start of the year.”

First Solar inventory used to be buying and selling about 11% decrease through 9:31 a.m. ET. The stocks are down about 20% yr up to now.

First Solar is the most important, publicly traded producer of sun modules within the United States. Wall Street analysts have seen First Solar as the corporate this is highest situated within the sun business to climate price lists as it has invested in production amenities within the U.S.

Analysts at KeyBanc, Oppenheimer and Jefferies downgraded First Solar’s inventory after the corporate reported its first-quarter monetary effects Tuesday afternoon.

Widmar stated Trump’s price lists “create a significant economic headwind” for First Solar’s vegetation in India, Malaysia and Vietnam. The amenities in Malaysia and Vietnam serve the U.S. marketplace solely, whilst the website online in India serves South Asia and North America, he stated. First Solar would possibly have to scale back or idle manufacturing on the Malaysia and Vietnam factories. he stated.

The uncertainty about whether or not Trump’s price lists will stay at 10% or building up after the president’s 90-day pause “has created a challenge to quantifying the precise tariff rate that would be applied to our module shipments into and beyond the second half of this year,” Widmar stated.

First Solar reduce its full-year forecast in keeping with Trump’s price lists, with the corporate now estimating income of $12.50 to $17.50 according to proportion and earnings of $4.5 billion to $5.5 billion. The higher finish of the steering anticipates the 10% price lists stay in position thru this yr. First Solar used to be in the past anticipating income of $17 to $20 according to proportion in 2025 and gross sales of $5.3 billion to $5.8 billion.

Widmar stated the outlook for sun call for is powerful over the longer term because of emerging energy call for within the U.S. First Solar is lobbying Congress and the Trump management to stay production tax credit beneath the Inflation Reduction Act in position, he stated.