First Solar (NASDAQ:FSLR) shares climbed around 8% in premarket trading after US President Donald Trump signed an executive order introducing a 15% tariff alongside minimum import price requirements for polysilicon and its downstream products. The measures, implemented under Section 232 of the Trade Expansion Act, will take effect on 4 December 2026.
The policy establishes minimum import prices of $21 per kilogram for polysilicon, $0.22 per watt for solar cells and $0.38 per watt for finished solar modules. The administration said the move is intended to protect domestic manufacturers from unfair overseas competition and reduce US dependence on Chinese solar supply chains.
New Trade Measures Strengthen First Solar’s Competitive Position
First Solar is widely viewed as one of the main beneficiaries of the new tariff regime because its solar panels use cadmium telluride thin-film technology rather than conventional crystalline silicon.
As a result, the company’s manufacturing costs are largely insulated from the new restrictions, while imported silicon-based products are expected to become more expensive under the newly introduced pricing rules.
This competitive advantage is expected to strengthen First Solar’s position in the US market as rival manufacturers relying on imported crystalline silicon components face higher costs.
Strong Earnings and Analyst Upgrades Add Momentum
The latest policy announcement builds on an already positive outlook following First Solar’s second-quarter 2026 results.
The company reported earnings per share of $3.92, exceeding analyst expectations by roughly 39%, while its contracted order backlog reached $13.6 billion, representing 45.1GW of future projects extending through 2030.
Several investment banks have also become more optimistic on the stock. Guggenheim increased its price target to $282 from $279, Citi lifted its target to $297 from $294, and Barclays maintained its Buy rating after the earnings release.
Stock Outperforms Broader Market
The broader US equity market posted only modest gains, with the Nasdaq rising around 0.4% and the S&P 500 adding approximately 0.1%, suggesting First Solar’s rally was driven primarily by company-specific developments and the newly announced tariff policy.
By contrast, solar manufacturers with greater exposure to imported crystalline silicon components may face a more challenging operating environment under the revised trade rules.
The combination of formal confirmation of the tariffs, strong quarterly results and a series of favourable analyst revisions helped propel First Solar shares sharply higher, lifting the stock toward $263.54 after closing the previous session at $244.14.
First Solar stock price
