Solar Shares Are Volatile Today: What's Going On?

Zinger Key Points

Solar stocks drop significantly after Trump signs executive orders promoting fossil fuels and reversing renewable energy rules
The policy shift includes withdrawing from the Paris Agreement, expanding oil and gas drilling, and halting federal support for green energy
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Shares of solar stocks, including First Solar Inc. FSLR and SolarEdge Technologies, Inc. SEDG were volatile Wednesday as investors reacted to President Donald Trump’s newly signed executive orders promoting fossil fuels and reversing climate-focused policies.

What To Know: The sell-off followed Trump's inauguration and his immediate signature on executive orders prioritizing oil and gas development over renewable energy initiatives.

According to the New York Times, his administration announced plans to withdraw from the Paris Agreement, expand fossil fuel drilling on public lands and waters, and eliminate regulatory support for electric vehicles and renewable energy projects. Trump also declared a national energy emergency aimed at accelerating fossil fuel production, further unsettling renewable energy investors.

The market’s response may reflect concerns over the new administration's shift in energy policy, which contrasts sharply with the pro-renewable initiatives under the previous Biden administration. Analysts believe this pivot could slow the growth of the renewable energy sector and significantly impact solar companies, contributing to the downward pressure on their stock prices.

Price Action: First Solar’s stock closed Wednesday at $171.90, down 6.33%, and SolarEdge Technologies closed at $13.05, down 4.74%, according to Benzinga Pro.

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