First Solar, Inc. (FSLR) closed the regular trading session Thursday at $244.14, up 3.10%, before climbing an additional 7.73% to $263 in after-hours trading. The rally followed the Trump administration's announcement of Section 232 trade measures targeting Chinese polysilicon imports under the Trade Expansion Act.

Section 232, a Cold War-era provision of the Trade Expansion Act of 1962, allows the president to impose trade restrictions on imports deemed a threat to national security. The measures include a 15% tariff and minimum import-price requirements on polysilicon and downstream products, scheduled to take effect December 4.

Trump Sets Polysilicon Tariffs and Price Floors

President Trump signed a Section 232 action imposing a 15% ad valorem tariff on polysilicon derivative imports.

TRUMP SETS POLYSILICON TARIFFS AND PRICE FLOORS President Trump signed a Section 232 action imposing a 15% ad valorem tariff on polysilicon derivative imports. $FSLR The US will also set minimum import prices of $21 per kilogram for polysilicon and $100 per kilogram for… pic.twitter.com/WS4Kt6FWWD — Wall St Engine (@wallstengine) August 6, 2026

China currently controls more than 90% of global polysilicon supply. First Solar has described this concentration as a security risk, citing forced labor exposure and anti-competitive pricing.

CEO Mark Widmar called the action "one of the most strategically significant trade measures in decades." He said the enforcement mechanisms are designed to close loopholes that have been exploited by China-linked supply chains.

First Solar publicly backed the measures, which align with the company's competitive position. First Solar uses its own cadmium-telluride thin-film technology and does not rely on Chinese crystalline silicon supply chains. The company operates five US manufacturing facilities across Alabama, Louisiana, and Ohio, with a sixth plant under construction in South Carolina. First Solar expects to invest over $5 billion in domestic manufacturing and R&D by year-end and is targeting approximately 17 GW of US module capacity by 2027.

Analyst Price Targets Move Higher

Wells Fargo raised its price target on FSLR to $313 from $300 on Friday, maintaining an overweight rating. The bank said the tariff and price-floor policy could deliver greater benefits than previously expected.

Citigroup's Vikram Bagri maintained a Buy rating on Monday, lifting his target to $297 from $294. Guggenheim's Joseph Osha also kept a Buy rating, raising his target to $282 from $279.

Truist Financial held a Hold rating but trimmed its target to $229 from $249. Oppenheimer maintained a Market Perform rating. The consensus sits at Moderate Buy with an average target of $254.89.

Q2 Earnings Beat, Revenue Dips Slightly

First Solar reported Q2 earnings of $3.92 per share, exceeding the $2.90 consensus estimate by more than $1. Revenue came in at $1.056 billion, just below the $1.062 billion estimate and down 3.4% year over year. Analysts expect full-year EPS of $17.75.

Over the past three months, insiders sold a total of 38,505 shares worth approximately $9.4 million, including CEO Widmar selling 9,926 shares in May.

The stock has traded in a 52-week range of $176.47 to $320.95 and has gained 31.96% over the past 12 months.

Securities Class-Action Lawsuit

Several law firms have publicized a securities class-action lawsuit against First Solar alleging inadequate disclosure of production underutilization and onshoring costs. The lead-plaintiff deadline is August 24.