Solar stocks are rallying, with boosts from Tesla and China

By Claudia Assis

SunPower's stock vaults 26% on Tesla battery news

Solar stocks jumped on Wednesday, with SunPower Corp. shares leading the way after the solar-power company unveiled a deal with Tesla, Inc. for stationary batteries.

The sector also got a boost from news that China, the world's leading maker of panels and other solar-power products, was planning measures against a price war.

Shares of SunPower (SPWR) jumped 26%, taking some of the sting of deeper losses in recent months. So far this year, the stock is down 27%, compared with an 11% advance for the S&P 500 index SPX.

Earlier Wednesday, SunPower, which focuses on residential solar, said it hammered out a deal with Tesla (TSLA) to offer the company's Powerwall, a stationary battery.

"Homeowners are increasingly turning to battery storage to protect themselves against ongoing utility rate hikes and grid outages," SunPower said, adding that it seems a future where almost all solar systems are paired with storage.

Other stocks rallying Wednesday included those of First Solar Inc. (FSLR) and Canadian Solar Inc. (CSIQ). The Invesco Solar ETF TAN gained more than 9%.

In China, the country's Photovoltaic Industry Association said in a recent WeChat post that it would crack down on below-cost prices of solar equipment and materials, according to a Bloomberg report.

The post mentioned a May 17 meeting that included the attendance of an official from the Ministry of Industry and Information Technology, the report said.

-Claudia Assis

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05-22-24 1242ET

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