- Mizuho analysts see no meaningful earnings impact to First Solar before 2030 from Tesla‘s solar ambitions, citing cost and supply chain hurdles.
- Wells Fargo also expects limited impact on First Solar, but views other U.S. makers like Canadian Solar as more at risk.
- Contrasting with peers, BMO Capital downgraded First Solar to ‘Market Perform,’ citing Tesla’s potential competitive threat.
- Despite a 10% drop last Thursday, FSLR shares rose 1% on Friday as Wall Street largely downplayed Tesla’s plans.
- CEO Elon Musk reiterated Tesla’s goal to produce 100 gigawatts of solar capacity annually within three years, though analysts question the timeline and cost.
Shares of First Solar Inc. (FSLR) rose 1% on Friday, recovering after Wall Street largely dismissed the financial threat from Tesla Inc.‘s ambitious solar manufacturing goals. Mizuho told investors that competition concerns are overdone, according to a report from TheFly.
The firm argues that building fully U.S.-made solar modules will be capital intensive and cost more than First Solar‘s current average selling price. Consequently, Mizuho does not expect any meaningful impact on First Solar‘s earnings through at least 2030 from Tesla‘s proposed plan.
Wells Fargo, meanwhile, also sees limited impact to First Solar given its cost advantage and pricing power. The firm stays positive on the stock and recommends buying on weakness, as other U.S. manufacturers including Canadian Solar (CSIQ) face more risk in its view.
However, BMO Capital struck a more cautious tone by downgrading First Solar to ‘Market Perform’ from ‘Outperform’ with a price target of $263. The firm now believes Tesla‘s efforts could be an overhang on First Solar shares for some time.
Tesla CEO Elon Musk reiterated the target of 100 gigawatts of annual solar manufacturing during the company’s recent earnings call. “We’re building more manufacturing capacity and expect that energy will have very high growth for really as far into the future as we can imagine,” Musk stated.
Despite the initial sell-off, retail sentiment on platforms like Stocktwits remained in ‘bullish’ territory over the past 24 hours. One user noted that Tesla focuses on residential panels, not the utility-scale market where First Solar operates.
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