Several solar stocks including First Solar, Inc. (NASDAQ:FSLR), Sunrun Inc. (NASDAQ:RUN), SolarEdge Technologies, Inc. (NASDAQ:SEDG, NASDAQ:SEDG) and SunPower Corporation (NASDAQ:SPWR), rallied significantly on Wednesday, potentially driven by reports of lawmakers advocating for an investigation into Chinese solar firms.
What's Going On: As reported by Axios, the Biden administration is being pushed to investigate Chinese solar companies for allegedly evading U.S. tariffs. This initiative comes amid growing tensions over trade with China, a key issue in the 2024 election.
"It's clear that China illegally subsidizes its solar industry to deliberately undermine American manufacturers," Sen. Sherrod Brown (D-Ohio) reportedly said in a letter to the Commerce Department and the U.S. International Trade Commission (ITC).
"Holding China accountable for its illegal trade practices will allow for the growth of a more diverse, and more secure, solar supply chain here in the United States."
In late April, the American Alliance of Solar Manufacturing Trade Committee filed a petition with the Commerce Department and the ITC, requesting a new investigation into solar panels imported from Southeast Asia. The lawmakers' letter supports domestic solar manufacturers and emphasizes the need to scrutinize China's trade practices.
Despite the positive movement in solar stocks, Goldman Sachs analyst Brian Lee maintained a Sell rating on SunPower on Wednesday and lowered the price target from $2.25 to $2, per Benzinga Pro.
FSLR, RUN, SEDG, SPWR Price Action:
- First Solar shares closed Wednesday up 2.59% at $273.06
- Sunrun shares closed up 6.43% at $14.90
- SolarEdge shares closed up 3.27% at $48.92
- SunPower shares closed up 6.21% at $3.22
Image: Andreas from Pixabay.