First Solar's $2 Billion Problem

MrDecoder · 2026-03-03T11:47:31+00:00

First Solar is generating profit primarily from government subsidies, but their future is uncertain as these subsidies may not continue. Despite profits, their backlog is not expanding, putting the company in a risky position in the U.S. solar market.

MrDecoder

2026-03-03 11:47:31

Abstract generation in progress

First Solar (FSLR +0.61%) continues to churn out profitable quarters, but the company is playing a dangerous game with subsidies. Most of its gross profit comes from government subsidies, which may not last. And even with those subsidies, the company’s backlog isn’t growing as you may expect. In this video, I go over both the numbers and the precarious position First Solar has gotten itself into going all-in on the U.S. solar market.

*Stock prices used were end-of-day prices of Feb. 25, 2026. The video was published on March 1, 2026.

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