What FSLR CEO Said
- Emphasis on Fair Competition:
- First Solar’s CEO, Mark Widmar, says the tariffs create a “Level Playing Field” for U.S. companies.
- He believes tariffs help support innovation and long-term energy independence in the U.S.
“What we’re trying to do is make sure that we have a level playing field so that all U.S. companies who manufacture here in the U.S. have an opportunity to compete on their own merits.”
- China’s Dumping Problems:
- Widmar points out that China’s cheap dumping harms other countries.
- He thinks China should solve its own supply issues without affecting other markets.
“Right now, they’re dumping that product into international markets and doing that is creating an unfair competitive advantage and devastating others”
Pros of First Solar
- U.S. Tariff Increase:
- The Biden administration doubled tariffs on Chinese solar panels to 50%.
- This move protects the U.S. market and helps domestic manufacturers like First Solar.
- The higher tariffs make it easier for U.S.-made panels to compete with cheaper Chinese products.
Cons of First Solar
- Market Competition:
- China has an oversupply of solar panels and sells them cheaply in international markets.
- These cheap panels enter the U.S. market, creating unfair competition.
- Overproduction:
- The U.S. has over 30 GWs of solar panels in stock due to China’s dumping.
Performance of Related Stocks and ETFs (11am, July 30)
- First Solar (NASDAQ: FSLR): Around $219 (fell -2.80% to $220 Yesterday / down -1.81% in 1M)
- Global X Solar ETF (NASDAQ: RAYS): Currently unchanged (up 4.39% in 1M)
- Invesco Solar ETF (NYSE: TAN): Currently down -0.89% (up 5.10% in 1M)
- IShare Global Clean Energy ETF (NASDAQ: ICLN): Currently down -0.22% (up 4.60% in 1M)
*Reference: Factiva, Benzinga, First Solar Inc.