Hi Darren,
The article should be a positive for First Solar (FLSR US) which currently has 3 manufacturing sites in the US. US President Joe Biden has made it clear that he wants the US to secure a green future with onshore & western supply of green energy, which includes solar power. It is likely that the industry will see further support to stay profitable and economical to produce out of the United States given the flood of Asian manufactured solar panels making its way into the US and being sold at prices below the cost to produce for many US based companies.
In saying that, there is a two fold issue in play here. Joe Biden is only being given a 50/50 chance of seeing a second term. His likely challenger, Donald Trump, has an existential question to answer regarding the support for the industry. His voter base has bought in to the onshoring story, supporting local jobs, however, they are less warm to climate based spending, though he did increase tariffs on Chinese solar panels in his term as President.
The second issue, for First Solar at least, is that they are planning a fourth manufacturing site in the US in 2025. It makes the conversation around additional assistance more difficult when you have significant investment already planned. It may mean FLSR abandon these plans, taking a hit on already invested capital, or run the risk of bringing on more capacity at a time when its not economical.
For now, we see these issues as largely priced in and expect the tailwind of great solar take up as supportive of FLSR US moving forward.
