2025 April - Why First Solar (FSLR) is Crashing... And Why That Might Be Great News

If you've been watching the clean energy space lately, you may have noticed that First Solar, known by its ticker FSLR, has had a rough ride. But before we dive into what’s going on, let’s take a quick look at what the company’s name actually means.

“First Solar” reflects the company’s vision of leading the solar industry through innovative, sustainable solutions. It positions itself as a pioneer — one of the "first" to truly push solar forward on a commercial scale.

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As you can see in the chart above, First Solar’s price has dropped significantly. That might scare some people off, but for value investors, this is exactly when things start to get interesting. Good companies on sale? That’s when smart money begins to pay attention.

Compared to Other Solar Stocks

FSLR is often compared to Enphase Energy and SolarEdge. While Enphase focuses more on solar microinverters and smart systems, and SolarEdge combines power optimization with inverters, First Solar is known for its unique thin-film solar modules that are less dependent on raw silicon. That gives them a different cost structure — and sometimes an edge — especially during supply chain issues.

What’s Hurting FSLR Right Now?

There are a few key challenges. First, high interest rates are slowing down big solar projects. Many companies and homeowners are pausing installations until financing becomes cheaper. Second, global competition — especially from low-cost Chinese manufacturers — continues to push prices down. Lastly, recent policy uncertainty around subsidies and tariffs in the U.S. is making investors nervous.

But There’s Still a Bright Side

Despite short-term issues, the long-term outlook for First Solar remains strong. Governments around the world are doubling down on clean energy goals, and the U.S. Inflation Reduction Act provides long-term tax incentives for domestic solar manufacturing. FSLR is one of the few American-based solar manufacturers, and that gives them a strategic advantage.

They’re also scaling up production capacity in the U.S., investing in new technologies, and securing large supply contracts with major utilities. That kind of forward planning often pays off when the market turns around.

Final Thoughts

When prices drop, emotions run high. But value investing is about looking past short-term noise and focusing on long-term fundamentals. FSLR might not be a quick win, but if you believe in solar and clean energy, this could be a great time to start paying attention.