First Solar, Inc. (FSLR) Stock Analysis

First Solar’s principal competitive advantage lies in its proprietary cadmium telluride (CdTe) thin-film technology, which differentiates it from the dominant Chinese and Southeast Asian crystalline silicon (c-Si) module manufacturers such as LONGi, JinkoSolar, and Trina. CdTe modules use only 2–3% of the semiconductor material required for c-Si modules, resulting in lower material costs and a smaller carbon footprint. In high-temperature and humid environments, First Solar’s modules deliver superior energy yield due to a better temperature coefficient and spectral response, and are immune to cell cracking—a common failure in c-Si panels.

First Solar is the only fully vertically integrated, large-scale U.S. solar module manufacturer, with over 14 GW of domestic capacity expected by 2026. This U.S. footprint, combined with a domestic supply chain, positions the company to benefit disproportionately from U.S. industrial policy, including the Inflation Reduction Act’s Section 45X tax credits (worth ~$0.17 per watt produced). In contrast, most rivals are exposed to tariffs and supply chain scrutiny.

The company’s R&D investment—$2 billion over 20 years—has yielded world-record CdTe cell efficiencies (23.1%) and a robust patent portfolio. Customer satisfaction is supported by a 30-year performance warranty and a strong track record in utility-scale projects. However, First Solar remains exposed to raw material supply risks (notably tellurium) and faces intense price competition from heavily subsidized Chinese peers.