First Solar Credits Trump’s ‘Big Beautiful Bill’ For Putting It In A ‘Better Position’ Than Before, Raises Annual Sales View

First Solar (FSLR) stock gained 2% in premarket trading on Friday after the solar panel maker allayed some concerns over future growth and raised its annual sales forecast.

It now projects net sales between $4.9 billion and $5.7 billion in 2025, compared with its previously estimated $4.5 billion to $5.5 billion in sales. Analysts expect it to post $5.07 billion in sales.

Solar stocks have been pressured by President Donald Trump's signature tax bill which aims to rapidly wind down subsidies for solar and wind projects. However, the final version of the bill was less harsh than previous drafts and gave manufacturers some time to still get the tax credits.

CEO Mark Widmar said on a call with analysts that Trump's “One Big Beautiful Bill” Act has put the company “in a better position” of strength than it was following the passage of the Inflation Reduction Act of 2022.

He noted that some key provisions of the IRA were maintained in the bill and new restrictions severely limited tax incentive eligibility for products manufactured by or with material assistance from foreign entities of control, or FEOCs, such as Chinese solar manufacturers, which were absent from the Biden-era legislation.

Retail sentiment on Stocktwits about First Solar was in the ‘bullish’ territory, while retail chatter was ‘high’ at the time of writing.

First Solar has benefited from increased scrutiny of Chinese solar modules, with several power companies flocking to its panels, which rely on cadmium telluride rather than the more common crystalline silicon used by most manufacturers, including those in China.

The company and its domestic rivals had asked the U.S. Commerce Department to impose tariffs on imports from Indonesia, India, and Laos, to protect their domestic manufacturing facilities and better compete with Chinese rivals who they allege are transshipping their products.

“The case for utility-scale solar generation is compelling regardless of the policy environment,” Widmar noted. While residential solar demand has lagged, utilities are ramping up deployments amid a spike in power demand.

“It will be nice to see this over $200 again,” one trader said.

First Solar stock has fallen 1.8% this year.

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