In contrast to the price action in recent sessions, First Solar, Inc. (NASDAQ:FSLR) shares have rallied higher today on the back of a Washington Post article that reported President Trump’s administration is considering a potential carbon tax (along with a potential value-added tax) to shore up government revenues. Although no final decision has been rendered, a carbon tax, if levied, would help boost renewable energy’s competitiveness versus fossil fuels. That could, in turn, translate into more demand for First Solar in the long run.
Given that President Trump has been sharply in favor of the oil and gas and coal industry and has placed a greater emphasis on creating American jobs rather than regulating global temperatures, the fact that the administration is even considering a carbon tax is certainly bullish for solar sentiment, at least in the near term. Whether the administration will actually enact a carbon tax is anyone’s guess however.
What Does The Smart Money Sentiment Say?
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According to our data, the smart money wasn’t as optimistic on the solar producer in the fourth quarter as they were in the third quarter. Of the 742 elite funds we track, 21 funds owned $168.09 million of First Solar, Inc. (NASDAQ:FSLR) and accounted for 5.00% of the float on December 31, versus 23 funds and $245.59 million respectively on September 30.
The Bottom Line
First Solar, Inc. (NASDAQ:FSLR) shares have popped today on the news that the Trump administration is considering a potential carbon tax. For more renewable energy reading, check out the article, ‘Solar Roadways and Solar Road Panels: Debunked/Busted or A Great Idea?‘.