First Solar is one of the best positioned companies in the clean technology space in the wake of President Donald Trump’s tariffs, according to Morgan Stanley. First Solar will have some near-term exposure to Trump’s taxes on imports, but the company “is a key beneficiary of tariffs over the long-term” because a significant portion of its solar panel manufacturing capacity is located in the U.S., analyst Andrew Percoco told clients in a Monday note. About 50% of First Solar’s capacity is located in Malaysia, Vietnam and India with the rest in the U.S., Percoco said. The company has about $500 million to $600 million of tariff exposure this year from its three factories in those countries, according to the analyst. FSLR 6M mountain First Solar shares over the past six months But First Solar is ramping up its domestic manufacturing capacity with 93% of the company’s revenue already coming from the U.S. It could start to benefit from rising sale prices for solar modules in the U.S. due to tariffs starting in 2027, Percoco said. This could result in 10% to 15% upside from Morgan Stanley’s base-case scenario for the company, according to the analyst. First Solar’s stock is flat since Trump announced his tariffs last Wednesday. Shares have fallen about 26% so far this year, but were trading 3% higher in Tuesday’s trading. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
Morgan Stanley says this solar stock is a ‘key beneficiary of tariffs over the long term’
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