First Solar Downgraded Amid Competitive Pressures from Tesla
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy FSLR?
Source: stocktwits
First Solar Inc's stock fell sharply, hitting a 20-day low, as the company faces significant competitive pressures from Tesla, which has been rapidly scaling its clean energy manufacturing capacity.
The downgrade from BMO to market perform reflects concerns about First Solar's market positioning in light of Tesla's aggressive expansion in the solar sector. This news comes amid a broader market decline, with the Nasdaq-100 down 2.19% and the S&P 500 down 1.35%, indicating a challenging environment for solar stocks.
Investors are closely monitoring First Solar's upcoming earnings report and its strategic responses to these competitive threats, as the company aims to maintain its leadership in the renewable energy market.
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Analyst Views on FSLR
Wall Street analysts forecast FSLR stock price to rise
23 Analyst Rating
18 Buy
4 Hold
1 Sell
Moderate Buy
Current: 238.570
Low
150.00
Averages
280.35
High
335.00
Current: 238.570
Low
150.00
Averages
280.35
High
335.00
About FSLR
First Solar, Inc. is a photovoltaic (PV) solar technology and manufacturing company. It is focused on enabling power generation needs with its advanced, thin film PV technology. The Company's primary segment is its modules business, which involves the design, manufacture, and sale of CdTe solar modules, which convert sunlight into electricity. Third-party customers of the segment include system developers, independent power producers, utilities, commercial and industrial companies, and other system owners and operators. The Company's products include the Series 7 Module and Series 6 Plus module. Its Series 6 Plus module is a glass laminate approximately 4ft x 6ft in size that encapsulates thin film PV semiconductor materials. Its Series 7 module has a larger form factor of approximately 4ft x 7ft in size. The Series 6 Plus and Series 7 modules had an average power output of 459 watts and 531 watts, respectively.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Competitive Threat: Analyst Ameet Thakkar noted that remarks by Tesla CEO Elon Musk in Davos suggest that Tesla may establish a vertically integrated solar PV module manufacturing base in the coming quarters, posing a potential threat to First Solar.
- Market Uncertainty: While it remains uncertain how much of Tesla's planned 100 GW manufacturing capacity will impact external markets, the company's proven ability to rapidly scale clean energy manufacturing in the U.S. increases competitive risks for First Solar.
- Long-term Pricing Pressure: Even if a portion of Tesla's manufacturing capacity is available to third parties, analysts believe this could negatively affect long-term module pricing, thereby exerting pressure on First Solar's stock price.
See More
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- Amazon Remains a Top Pick: Morgan Stanley reiterates Amazon as overweight, highlighting its underappreciated potential in AWS and retail, with expectations for AWS to grow over 30% in 2026/27, showcasing strong market competitiveness.
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- Rush Street Interactive Upgrade: Citizens upgrades Rush Street Interactive to market outperform, citing its durable business model in online gaming, which indicates strong growth potential driven by favorable market conditions.
- Optimistic Outlook for Nvidia: Wells Fargo reiterates Nvidia as overweight, advising investors to buy ahead of next week's earnings report, anticipating strong demand and GPU spending dominance to drive stock price increases.
See More
First Solar and Maplebear See High Options Trading Volume
- First Solar Options Activity: First Solar Inc (Ticker: FSLR) saw options trading volume of 16,527 contracts today, representing approximately 1.7 million shares, which is about 68.5% of its average daily trading volume of 2.4 million shares over the past month, indicating strong market interest in its future performance.
- High Strike Call Options: Within FSLR, the $270 strike call option expiring on June 18, 2026, has seen 2,867 contracts traded today, equating to approximately 286,700 underlying shares, suggesting an increased bullish sentiment among investors regarding its stock price.
- Maplebear Options Activity: Maplebear Inc (Ticker: CART) recorded an options trading volume of 36,382 contracts today, representing around 3.6 million shares, or approximately 62.9% of its average daily trading volume of 5.8 million shares over the past month, reflecting active market interest in its stock.
- CART Call Options Popularity: For CART, the $37.50 strike call option expiring on February 13, 2026, has seen 9,801 contracts traded today, representing approximately 980,100 underlying shares, indicating strong investor confidence in its future growth potential.
See More
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- Securities Fraud Investigation: Pomerantz LLP is investigating on behalf of First Solar investors whether the company and its officers have engaged in securities fraud or other unlawful business practices, indicating potential legal risks that could undermine investor confidence.
- Rating Downgrade Impact: On January 7, 2026, Jefferies downgraded First Solar from Buy to Hold, citing the company's lowered guidance in 2025, significant de-bookings, and margin compression, which may limit future growth opportunities.
- Stock Price Reaction: Following the downgrade announcement, First Solar's stock price fell by $27.67, or 10.29%, closing at $241.11, reflecting market concerns regarding the company's outlook.
- Legal Firm Background: Pomerantz LLP, a premier firm in securities class litigation with over 85 years of experience, focuses on fighting for the rights of victims of securities fraud and corporate misconduct, highlighting the seriousness of the legal challenges First Solar may face.
See More
Pomerantz LLP Investigates First Solar for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether First Solar has engaged in securities fraud or other unlawful business practices, aiming to protect investor rights and potentially initiate a class action lawsuit.
- Rating Downgrade Impact: On January 7, 2026, Jefferies downgraded First Solar from Buy to Hold, citing the company's lowered guidance in 2025, significant de-bookings, and margin compression, predicting more limited deployment opportunities in 2026.
- Stock Price Plunge: Following this news, First Solar's stock price fell by $27.67, or 10.29%, closing at $241.11 per share on January 7, 2026, reflecting market concerns about the company's future prospects.
- Legal Background: Pomerantz LLP is a prominent firm in corporate and securities class litigation, established over 85 years ago, dedicated to fighting for the rights of victims of securities fraud and corporate misconduct, having recovered numerous multimillion-dollar damages for class members.
See More
Limited Impact of Tesla's Solar Plans on First Solar, Analysts Say
- Market Performance Assessment: BMO Capital downgraded First Solar (FSLR) from 'Outperform' to 'Market Perform' with a price target cut from $285 to $263, reflecting concerns over competition from Tesla, although the market reacted mildly with FSLR shares rising 1% on Friday.
- Competition Risk Analysis: Wells Fargo believes that Tesla's solar expansion plans will have limited impact on First Solar due to its cost advantages and pricing power, while other U.S. manufacturers like Canadian Solar (CSIQ) face greater risks, indicating differing market expectations for various companies.
- Industry Feedback and Production Capacity: Mizuho analysts noted that fully U.S.-made solar modules will require significant capital investment, costing more than First Solar's average selling price, and scaling polysilicon and wafer capacity will take three to four years, suggesting that Tesla's plans are unlikely to materialize in the short term.
- Investor Sentiment and Market Reaction: Despite Tesla reiterating its 100 gigawatt solar production target at the World Economic Forum in Davos, FSLR shares fell over 10% on Thursday; however, retail sentiment on Stocktwits remained in the 'bullish' territory, reflecting confidence in the company's long-term prospects.
See More
BMO Downgrades First Solar to Market Perform Amid Competitive Threats
- Rating Downgrade: BMO has downgraded First Solar's rating from Outperform to Market Perform, reducing the price target from $285 to $263, reflecting concerns over future competitive pressures on the company.
- Competitive Threat: Analyst Ameet Thakkar noted that remarks by Tesla CEO Elon Musk in Davos suggest that Tesla may establish a vertically integrated solar PV module manufacturing base in the coming quarters, posing a potential threat to First Solar.
- Market Uncertainty: While it remains uncertain how much of Tesla's planned 100 GW manufacturing capacity will impact external markets, the company's proven ability to rapidly scale clean energy manufacturing in the U.S. increases competitive risks for First Solar.
- Long-term Pricing Pressure: Even if a portion of Tesla's manufacturing capacity is available to third parties, analysts believe this could negatively affect long-term module pricing, thereby exerting pressure on First Solar's stock price.
See More
