Why First Solar (FSLR) Is Down 5.4% After Announcing $330 Million US Manufacturing Expansion

• First Solar announced it will invest US$330 million to establish a new facility in Gaffney, South Carolina, onshoring final production for its Series 6 Plus solar modules and creating over 600 jobs with operations beginning in the second half of 2026.
• This expansion, supported by recent US energy policy changes, positions First Solar to further increase its domestic manufacturing capacity and meet strong demand for locally produced solar technology.
• We’ll examine how First Solar’s US$330 million investment to boost American manufacturing may influence its investment outlook and risk profile.

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First Solar Investment Narrative Recap

To be a First Solar shareholder, you generally need to believe in the importance of US clean energy policy, ongoing incentives for domestic manufacturing, and continued preference for American-made solar technology. The recent US$330 million investment in South Carolina boosts First Solar’s ability to meet domestic content rules and demand, but doesn’t materially change the most important short-term catalyst, a steady ramp in US manufacturing capacity, and leaves intact the main risk: exposure to policy shifts and global trade uncertainties.

First Solar’s announcement in October to build additional manufacturing facilities in Louisiana and Alabama directly connects to the new South Carolina plant, underscoring a broader push to expand US-based capacity. Together, these initiatives reflect the company’s focus on scaling up to capture policy-driven demand for domestically sourced modules, but challenges tied to trade policy and cost competitiveness remain front and center.

However, investors should be aware that regulatory changes and policy uncertainties could still threaten First Solar’s…

Read the full narrative on First Solar (it’s free!)

First Solar’s outlook anticipates $7.0 billion in revenue and $3.2 billion in earnings by 2028. This is based on a projected 17.4% annual revenue growth rate and a $1.9 billion increase in earnings from the current $1.3 billion.

Uncover how First Solar’s forecasts yield a $269.64 fair value, a 7% upside to its current price.

Exploring Other Perspectives

Fair value estimates from 27 Simply Wall St Community members range between US$142 and US$479 per share, reflecting wide differences in outlook. With government incentives at the core of First Solar’s story, it is clear that investor opinions often diverge on future policy support and its impact on earnings potential.

Explore 27 other fair value estimates on First Solar — why the stock might be worth 44% less than the current price!

Build Your Own First Solar Narrative

Disagree with existing narratives? Create your own in under 3 minutes — extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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