The U.S. government provided a $4.8 billion subsidy, snatching the global No. 1 spot from a Chinese company.

Recently, First Solar—the U.S.-based solar power giant—saw its stock price surge, reaching a market capitalization of $27.6 billion (approximately RMB 199.8 billion), making it the world’s most valuable photovoltaic (PV) company. Previously, this title of “global No. 1” had long belonged to the Chinese company Sungrow Power Supply. Currently, Sungrow’s market capitalization stands at RMB 146.6 billion—RMB 50 billion less than First Solar’s. Looking at the timeline: in mid-2022, First Solar’s share price hovered around $100; in less than two years, it nearly tripled. First Solar’s stock price chart Did First Solar’s soaring stock price result from a sharp revenue increase? No. Although First Solar’s 2023 revenue grew 27% year-on-year, it amounted to only $3.32 billion (RMB 24 billion)—far below Sungrow’s RMB 72.2 billion. First Solar’s core product is PV modules; its 2023 shipment volume was 12 GW—ranking outside the global top ten and less than one-sixth that of the Chinese firm JinkoSolar. The top ten global PV module shippers in 2023 were all Chinese companies. Source: Youquan Gongpin Was it due to a major technological breakthrough? No, again. Photoelectric conversion efficiency is widely regarded as the key indicator—and barometer—of PV module technology. First Solar’s modules achieve only 19.7% conversion efficiency—well below the Chinese industry average of 24%. Longi Green Energy Technology’s self-developed silicon-perovskite tandem solar cell, by contrast, has set a new world record with a conversion efficiency of 33.9%. Longi’s self-developed silicon-perovskite tandem solar cell sets a new world record for conversion efficiency So what explains First Solar’s rise to the top? The main reason is massive subsidies from the U.S. government. According to First Solar’s financial report, its 2023 net profit reached $830 million—a nearly 20-fold increase. Notably, $660 million (RMB 4.8 billion) of that $830 million came from U.S. government subsidies. In other words, nearly 80% of First Solar’s net profit originated from U.S. government subsidies. This generous subsidy program reflects the U.S. government’s broad support for the entire new-energy sector. On one hand, the U.S. government strongly backs domestic enterprises.

Tesla plans to select sites in New York, Arizona, and Idaho to expand solar cell production capacity.

Insiders also revealed that Arizona and Idaho are also under consideration for the site selection. Bonnie Eggleston, Tesla’s Vice President, is leading this project and has recently posted job openings on LinkedIn to recruit talent for U.S.-based solar manufacturing roles. Tesla’s previous efforts to develop its solar business failed to meet Elon Musk’s targets. Yet surging electricity demand from the artificial intelligence sector is now prompting Musk to prioritize solar operations once again. Solar cells—thin wafers used to manufacture solar panels—are central to this initiative. Musk recently stated on the “Cheeky Pint” podcast, co-hosted with John Collison, co-founder of the payments platform Stripe, that current U.S. tariffs on imported solar products are “staggeringly high.” The podcast was released on February 5. Musk said: “We need to produce solar products domestically. Both SpaceX and Tesla are aiming for an annual solar cell production capacity of 100 gigawatts.” Neither Musk nor Tesla responded to requests for comment regarding the above reports. Jeremy Chase, Director of Tourism and Marketing at the Idaho Department of Commerce, stated via email: “We neither confirm nor deny our current corporate partnerships, nor do we discuss projects currently underway or under consideration.” Neither the New York State Empire State Development Corporation nor the Arizona Governor’s Office responded to requests for comment. A spokesperson for the New York Governor’s Office added that no contact with Tesla has yet taken place regarding this matter. Last month, Musk stated that Tesla aims to achieve an annual solar cell production capacity of 100 gigawatts—to power data centers both on Earth and in space. If achieved, Tesla would easily become the largest solar manufacturer in the United States. Currently, First Solar Inc.—the leading U.S. solar manufacturing company—expects its domestic production capacity to reach 14 gigawatts this year.

First Solar Stock Hits 52-Week Low at $168.41

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First Solar shares fell to a 52-week low of $168.41, dropping 31.64% annually due to renewable energy sector challenges, despite some analysts viewing the stock as undervalued.

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First Solar Stock Hits 52-Week Low at $168.41

First Solar Stock Hits 52-Week Low at $168.41

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