First Solar (NASDAQ: FSLR) experienced a significant stock surge on April 22, 2025, climbing 10.5% following the U.S. Department of Commerce’s announcement of substantial tariffs on solar panels imported from Southeast Asia.
These tariffs, reaching up to 3,521%, target imports from countries like Cambodia, Thailand, Malaysia, and Vietnam, where Chinese manufacturers have been producing panels at subsidized, below-cost prices. ​
First Solar’s Market Reaction
The immediate market response was a 10.5% increase in First Solar’s stock price, reflecting investor optimism about the company’s strengthened competitive position due to the tariffs.
Analysts have adjusted their price targets accordingly; Barclays set a new target of $204, while TD Cowen and BMO Capital Markets have targets of $275 and $260, respectively, maintaining an “Outperform” rating. ​
There are Some Strategic Advantages
First Solar’s U.S.-based manufacturing operations position it to benefit from the tariffs, as they reduce competition from low-cost imports. The company’s use of cadmium telluride (CdTe) thin-film technology offers advantages in cost-effectiveness and performance in high-temperature environments, further enhancing its market position. ​
Looking Ahead, First Solar is Projected to…
…reach an average stock price of $234.07 in 2025, with potential highs of $283.37. The company’s robust financial health, including a strong balance sheet and consistent revenue growth, supports this optimistic outlook.​
While the tariffs present opportunities, they also introduce potential challenges, such as increased costs for imported components used in U.S. solar production.
Critics argue that these tariffs could inadvertently raise prices for domestic solar manufacturers. ​
First Solar’s recent stock performance shows its resilience and strategic positioning in the renewable energy sector.
The new tariffs enhance its competitive edge, and with strong financials and innovative technology, the company appears well-equipped to capitalize on the evolving market dynamics.
