In a rather bearish market today, some stocks are still outperforming nicely. First Solar (NASDAQ:FSLR) stock is one of the names investors have their eyes on. Shares of the solar energy solutions provider have surged higher in today’s session, with FSLR stock now up about 3% at the time of this writing.
This move comes on news that the company has selected Alabama as the location for its next manufacturing facility in the United States. Given the company’s status as a premier manufacturer of photovoltaic solar modules necessary for generating solar power, this announcement is one investors appear to have been waiting for.
The manufacturing facility is expected to cost the company $1.1 billion to construct. Expected to be completed in 2025, the hub will be able produce 3.5 gigawatts (GWs) of power annually while also employing 700 individuals. For those bullish on the transition toward American-made clean energy infrastructure, this is a big deal.
Let’s dive into why FSLR stock investors are looking so positively upon this announcement today.
Why Is FSLR Stock Soaring Today?
The move in FSLR stock really makes sense when investors think about the broader landscape in the energy sector. For example, President Joe Biden’s Inflation Reduction Act is focused on making investments to boost domestic clean energy production. On this front, First Solar is about as American as you can get.
Accordingly, with the potential for government stimulus backing this company’s growth, there’s a lot to like about FSLR stock. The U.S. is still struggling to catch up to China, which has a stranglehold on most solar-related production. Thus, as a way to play the on-shoring of clean energy, First Solar seems like a safe bet.
First Solar’s commitment to adding a new U.S. facility in Alabama seems to make a lot of sense, too. Sure, the capital outlay for this building is significant. But operating expenses should remain manageable and the facility could provide strong margins over the long-run. That’s what investors seem to be banking on right now.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.