First Solar's shares plunged 14 per cent on Wednesday after the company slashed its 2025 revenue forecast to $4.9 billion-$5.2 billion, well below analyst expectations of $6.2 billion. The solar panel manufacturer cited multiple headwinds including Trump's tariffs and a slowdown in clean energy demand. BP's cancellation of a 6.6-gigawatt order with Lightsource BP added to investor concerns.

The tariff regime has hit First Solar's Asian manufacturing operations in India, Malaysia, and Vietnam with 20-50 per cent levies on exports to the US since late 2025. The company has been forced to sell production into domestic markets at lower prices and shut down capacity while reshoring operations. Chief financial officer Alexander R Bradley noted a strategic shift by oil and gas and European utility players away from US renewable development.

First Solar estimates $125 million-$135 million in costs from the 15 per cent tariffs imposed after the US Supreme Court invalidated Trump's previous tariff regime. The company faces additional pressure from longstanding import taxes on crucial components like aluminium. Analysts warn of long-term challenges for solar energy as demand grows for baseload power to support energy-intensive sectors like data centres and manufacturing.