Over the long term, clean energy should continue to be a growing sector. The world needs more electricity, and that will especially be true given the increasing power demand in sectors such as electric vehicles (EVs) and artificial intelligence.

However, there’s no guarantee that the growth curve will be a stable one. In fact, historically, there have been numerous booms and busts within sectors such as solar and wind power. And another bust may soon be upon us, at least for the United States renewable energy market.

There were already troubling macroeconomic factors, such as high interest rates which have dimmed demand for expensive new power projects.

Politics is another major concern. Former President Trump has taken a lead in the polls. And his pick for vice president, Ohio Senator J.D. Vance, is a climate change skeptic whose policy proposals could significantly impede the green power sector. These are three renewable energy stocks to sell before the presidential election.

Tesla (TSLA)

Tesla (NASDAQ:TSLA) is a lot of things, with electric vehicles being by far its most prominent business. However, it’s also a renewable energy company through items such as the Powerwall and its supercharging network.

The bad news for Telsa is that a potential Trump/Vance presidency could cripple multiple lines of Tesla operations.

For starters, Trump recently criticized electric vehicles, slamming what he called the “green new scam” while vowing to end EV mandates on day one. Meanwhile, Vance has introduced legalization which would offer large subsidies to support the sale of traditional gas-powered vehicles.

Elon Musk has offered a prominent endorsement for Trump this election cycle and appears fine with the selection of Vance as VP as well. This could come back to haunt Tesla’s shareholders, particularly if items such as the gas-powered car subsidies become law.

First Solar (FSLR)

First Solar (NASDAQ:FSLR) has been a bright spot in an otherwise grim industry this year. While the Invesco Solar ETF (NYSEARCA:TAN) is down more than 20% year-to-date, FSLR stock has rallied sharply in recent months.

First Solar used to be a broadly diversified solar business with a significant project development business. However, the company exited its other operations to focus solely on solar panel manufacturing.

Specifically, First Solar has focused on higher-end panels that deliver the most efficient power production, helping them stand out from cheaper overseas-sourced competition. That has served the company well during the Biden administration, as there has been a favorable regulatory and financial situation for First Solar’s panels.

However, the company’s reliance on just a few key markets (mostly the U.S. and India) put it at great risk from changing political winds. That brings attention to the upcoming presidential election. If the Trump ticket carries the day, we should expect to see American solar subsidies run dry and First Solar to take a much harder hit than the overall solar sector.

Freyr Battery (FREY)

Freyr Battery (NYSE:FREY) is a development-stage battery company. It is attempting to commercialize battery storage projects which will aid global decarbonization efforts. But Freyr has not achieved much commercial success to date.

The firm recently beat its earnings estimates for Q1, which seems like a positive — at first. In said quarter, the company lost just 20 cents per share, compared to the estimate for a 22-cent loss. Though, it seems, some of this can be accounted for by the fact that Freyr is having to downsize projects and lay off employees to cut costs.

However, the bigger issue is that Freyr generated no revenues at all for the quarter. Meanwhile, at a quarterly loss of 20 cents per share, the company will burn through a large chunk of its remaining market capitalization over the next year or two.

Freyr has largely given up on its overseas projects to bet everything on its U.S.-based manufacturing plans. If the Democrats retain control of the presidency, those bets could pay off nicely. But if Trump comes back to power, Freyr may lose access to its last financial lifeline as renewable energy subsidies get axed from the budget.

On the date of publication, Ian Bezek did not have (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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.