Solar Stocks Are Rallying Wednesday: What's Going On?

Shares of several solar companies, including Canadian Solar Inc. CSIQ, Enphase Energy, Inc. ENPH, First Solar, Inc. FSLR, and SolarEdge Technologies, Inc. SEDG, are trading higher Wednesday afternoon, possibly in response to President Joe Biden’s recent announcement of increased tariffs on Chinese imports, which included a significant hike on solar cells.

What’s Going On: Reports from last week indicated that the Biden administration is planning to impose a 50% tariff on Chinese solar cells this year, up from the previous 25%. The move aims to curb the influx of cheap, subsidized Chinese products that have been flooding the global market. In addition to solar cells, the new tariffs include a 100% import tax on Chinese electric vehicles and a 25% tariff on certain steel and aluminum products, according to CNBC.

The tariff hikes are part of a broader U.S. effort to address Beijing’s trade practices, which the White House argues distort global supply chains. The administration asserts that these measures will protect American jobs and industries without contributing to inflation, despite potential concerns about economic impacts.

Canadian Solar and Enphase may also be partially reacting to analyst updates from Wednesday. Roth MKM analyst Philip Shen reiterated a Buy rating for Canadian Solar with a $25 price target, reflecting optimism about the company’s prospects. Meanwhile, GLJ Research analyst Gordon Johnson initiated coverage on Enphase with a Sell rating and a price target of $45.82.

What Else: It’s worth noting that SunPower Corp SPWR shares notably surged by around 15% on Wednesday after the solar company announced that it would begin offering Tesla’s Powerwall 3 as part of its portfolio of solar and storage products. SunPower shares have been trending across various social sites since Wednesday morning.

See Also: SunPower Stock Is Getting A Boost From Tesla Wednesday: What’s Going On?

CSIQ, ENPH, FSLR, SEDG Price Action:

• Canadian Solar shares were up 10.8% at $17.55
• Enphase Energy shares were up by 8.09% at $120.49
• First Solar shares were up by 16.7% at $247.30
• SolarEdge Technologies shares were up 6.46% at $51.57

Photo by Nuno Marques on Unsplash.