Solar stocks sizzle on Wednesday with First Solar and Sunrun.

By Oliver Townsend Jun 5, 2024
Solar Stocks Heated Up On Wednesday: Here's Why - First Solar (NASDAQ:FSLR), Sunrun (NASDAQ:RUN).jpegOrginal image from: https://www.benzinga.com/news/24/06/39195774/solar-stocks-heated-up-on-wednesday-heres-why

Solar stocks experienced a surge on Wednesday, catching the attention of investors and analysts alike. The notable rise in several solar companies’ stock prices has been linked to a call for an investigation into Chinese solar firms for alleged tariff evasion. This article will delve into the reasons behind the uptick in solar stocks and the potential implications of this investigation.

Lawmakers Push for Investigation into Chinese Solar Companies

Lawmakers are urging the Biden administration to look into Chinese solar companies accused of evading U.S. tariffs. The initiative to investigate these firms comes amidst escalating trade tensions with China, a prominent issue in the upcoming 2024 election. Senator Sherrod Brown emphasized the importance of holding China accountable for unfair trade practices that harm American manufacturers. The American Alliance of Solar Manufacturing Trade Committee has petitioned for an investigation into solar panels imported from Southeast Asia, aligning with the lawmakers’ efforts to safeguard domestic solar manufacturers.

Impact on Solar Stocks

The news of a potential investigation has had a significant impact on solar stocks, with companies like First Solar, Sunrun, SolarEdge Technologies, and SunPower Corporation experiencing notable increases in their stock prices. The call for scrutiny into Chinese solar firms has fueled optimism among investors, leading to a surge in solar stock prices. Despite this positive movement, some analysts remain cautious, as evidenced by Goldman Sachs analyst Brian Lee’s decision to maintain a Sell rating on SunPower.

Price Action of Key Solar Stocks

On Wednesday, First Solar saw its shares rise by 2.59%, closing at $273.06. Sunrun’s stock price increased by 6.43% to $14.90, while SolarEdge shares closed up 3.27% at $48.92. SunPower Corporation also experienced a surge, with its shares closing up 6.21% at $3.22. These price actions reflect the positive sentiment surrounding solar stocks following the news of a potential investigation into Chinese solar companies.

Conclusion

The recent uptick in solar stocks can be attributed to the growing momentum behind calls for an investigation into Chinese solar firms for tariff evasion. This development has injected optimism into the solar energy sector, leading to significant increases in stock prices for key companies. As the situation continues to unfold, investors will closely monitor any updates regarding the investigation and its potential implications on the solar industry.

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