Sunrun (RUN) Stock Is Rising: What's Going On?

Shares of Sunrun Inc RUN cratered by more than 40% Tuesday, leading a widespread downturn in the solar energy sector. Following Tuesday’s dramatic sell-off, shares are staging a modest recovery in early Wednesday trading.

What To Know: Tuesday’s sharp sell-off followed the unveiling of a new tax bill by the U.S. Senate Finance Committee that proposes a significant rollback of renewable energy incentives.

The draft legislation, spearheaded by Senate Republicans, aims to accelerate the phase-out of tax credits for solar and wind energy, incentives that were originally bolstered by the Inflation Reduction Act of 2022.

The new proposal would slash these credits to 60% of their value by 2026, dropping to 20% in 2027 before being completely eliminated for projects beginning after 2028.

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Adding to the industry’s woes, the bill also seeks to terminate residential solar tax credits and consumer incentives for energy efficiency upgrades within 180 days of its enactment. This potential legislative shift sent shares of top renewable energy players tumbling in Tuesday’s trading.

In a contrasting move, the proposed bill extends tax incentives for nuclear energy until 2036, signaling a potential pivot in federal energy policy and boosting stocks in that sector. While Senate Republicans are pushing for a swift passage of the bill before the July 4th recess, the legislative timeline remains fluid.

Price Action: According to data from Benzinga Pro, Sunrun’s stock is surging 5% Wednesday morning to $6.07, putting pressure on bearish investors as its short interest remains significantly high at 31.41% of the float.

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How To Buy RUN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Sunrun’s case, it is in the Industrials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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