First Solar Inc. (NASDAQ:FSLR) Faces Challenges Amid New Tax Bill

• Jefferies maintains a "Hold" rating for First Solar Inc. (NASDAQ:FSLR) with a raised price target amidst solar industry challenges.
• The new House tax bill introduces provisions that could negatively impact the solar industry, affecting companies like First Solar.
• Legislation aiming to lower taxes and increase military spending could end several green-energy subsidies, leading to a decline in solar stocks.

First Solar Inc. (NASDAQ:FSLR) is a prominent player in the solar energy sector, specializing in the design and manufacture of solar panels and systems. The company is known for its advanced thin-film photovoltaic technology, which is used in large-scale solar power projects. First Solar competes with other solar companies like Enphase Energy and SolarEdge, which focus on solar inverters and energy management solutions.

On May 22, 2025, Jefferies maintained its "Hold" rating for First Solar, with the stock priced at $156.35. Jefferies also raised its price target from $127 to $157. This decision comes amid significant challenges in the solar industry, particularly due to a new House tax bill. The bill introduces stringent provisions that could impact the growth and financial performance of companies like First Solar.

The recent House tax bill has introduced challenges for the rooftop solar industry, affecting companies like First Solar. The bill sunsets renewable energy credits and incorporates more stringent provisions, which could be detrimental to the sector. As a result, First Solar's stock price decreased by 4%, trading at $156.82, as highlighted by Schaeffer's Research.

The bill aims to lower taxes and increase military spending, potentially ending several green-energy subsidies. This has led to a significant decline in solar stocks, with First Solar experiencing a 4.30% decrease. The stock has traded between $152.72 and $160.97 today, with a market capitalization of approximately $16.77 billion.

The legislation is described as "disastrous" for the rooftop solar industry by Guggenheim, as it eliminates crucial clean energy credits. This has led to a premarket plunge in solar stocks, with companies like Sunrun and Enphase Energy experiencing significant declines. The bill also terminates investment and electricity production credits for clean energy facilities, which have been vital for the sector's growth.