Markets panic-sold solar and clean energy stocks after Tesla (TSLA) posted weak profit margins. Investors anticipate government funding and subsidies for this energy will end.
SunPower (SPWR) worsened the solar energy bearishness when it said it would restate its FY 2022, Q1, and Q2 2023 results. The firm discovered a material weakness in its internal controls over financial reporting. Despite overstating only $16 million to 20 million for the inventory of microinverter components, SPWR stock lost one-fifth of its value last week.
Short sellers have a 38.21% short interest against the stock.
On Oct. 27, 2023, Enphase (ENPH) lost 14.65% of its value when it posted weak Q3 revenue. It blamed weak macroeconomic conditions in the U.S. European sales fell by a shocking 34%. Inventory levels at Enphases’s distribution partners rose, while demand in its key markets (Germany, France, and the Netherlands) fell.
It expects Q4/2023 revenue of up to $350 million. Analysts expected revenue of at least $579 million.
Speculators may consider betting on a rebound. However, solar stocks like Enphase are unlikely to reward investors. Consider revisiting ENPH stock in the middle of 2024. By then, the company will have built a stronger presence in more countries. It should have stronger demand and more diverse customers in the next year.
