US Election 2024: Solar Stocks Dim On Trump Win As Fear Of Subsidy Cuts Loom, But Retail Keeps Calm

Shares of solar and renewable energy stocks faced significant pre-market declines on Wednesday as investors expressed concerns over the implications of Donald Trump’s victory in the U.S. presidential election. 

Trump reclaimed the presidency after securing the necessary 270 Electoral College votes, as reported by major news outlets. 

Known for his skepticism toward climate change and support for fossil fuels, Trump is expected to push for the rollback or modification of green policies enacted by the previous administration, including solar tax credits and other clean energy incentives under President Biden’s Inflation Reduction Act (IRA).

Among the hardest hit were First Solar Inc. ($FSLR) and Enphase Energy Inc. ($ENPH), which fell over 12% in pre-market trading, ranking them among the top decliners on the S&P 500 as of 8:30 a.m. ET. 

On Stocktwits, several users shared their perspectives, pointing to a potential “rubberband effect” for solar stocks. 

One user argued that Trump’s policies might not impact solar incentives as much as feared, noting that even solar-power products from Tesla, led by Musk — one of Trump’s major supporters — benefits from those subsidies. 

Another user added that while Enphase may face short-term volatility, “further interest rate cuts, share buybacks, and increasing demand” could stabilize the company.

Some analysts have also downplayed Trump’s potential impact on renewable energy. 

Reuters cited industry experts who argued that Biden’s IRA, which includes over a decade’s worth of subsidies and incentives for clean energy projects, is likely safe from repeal, given substantial support from both Democratic and Republican lawmakers, particularly in states benefiting from these initiatives. 

Other renewable energy names followed the decline pre-market, including AES Corp. ($AES), which operates in renewable and thermal power generation and was down over 6%.

Sunrun Inc. ($RUN), due to report quarterly earnings on Thursday, was down 13%; and Array Technologies Inc. ($ARRY), dropping more than 12%. 

Maxeon Solar Technologies Ltd ($MAXN), a key player in solar energy, was down over 10% even as retail sentiment was ‘bullish’ on Stocktwits.

Both the iShares Global Clean Energy ETF ($ICLN) and the Invesco Solar ETF ($TAN), major funds tracking the renewable sector, faced losses of more than 8% and 11%, respectively, ahead of Wednesday’s open.

For updates and corrections, email newsroom@stocktwits.com

Read next: US Election 2024: Trump's Triumph Lifts Bitcoin To Record High, Crypto-Linked Stocks Surge

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