Shares of Maxeon Solar Technologies Ltd. (NASDAQ:MAXN) are volatile Tuesday after the company announced a significant restructuring of its business operations. Here's what you need to know.
What To Know: Maxeon Solar announced plans to focus exclusively on the U.S. market, citing its established presence and a planned local manufacturing facility as key elements for growth.
As part of the restructuring, Maxeon has signed a five-year lease for a facility in Albuquerque, New Mexico. The company aims to begin solar panel production at this site in 2026 with an initial planned capacity of 2 gigawatts. This marks the company's first step in a broader initiative to establish a domestic solar panel supply chain.
"As Maxeon intensifies its focus on the U.S. market, our priority is to further expand our growing residential and commercial partner network and support our well-established base of utility-scale customers," said George Guo, Maxeon's CEO.
In a move to exit other international markets, Maxeon has reached agreements in principle with TCL Technology Group, its majority shareholder, to sell its sales and marketing operations in Europe, Asia-Pacific and Latin America. TCL plans to integrate the operations into a new unit called TCL SunPower International, which will also acquire Maxeon's manufacturing operations in the Philippines.
Following the transactions, Maxeon will focus solely on the U.S. residential, commercial and utility-scale solar markets. The restructuring aligns with the company's strategy to strengthen its U.S. operations and prioritize domestic solar supply chain development.
The agreements between Maxeon and TCL are expected to be finalized by the end of 2024, with the Albuquerque project contingent on securing financing.
"This strategic re-focusing of our business is designed to keep us closer and more attuned to the needs of our U.S. customer base, allowing us to leverage Maxeon's deep experience and top-tier reputation for product innovation and quality that are a result of almost 40 years of technology leadership and investments in intellectual property," Guo added.
MAXN Price Action: Maxeon Solar shares initially traded up above $10 per share before reversing course and turning negative. The stock was down 3.76% at $7.68 at the time of writing, according to Benzinga Pro.
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