Enphase's Warning Sends Solar Stocks Plummeting
Solar stocks experienced a decline after Enphase Energy reported a 13% decrease in revenue and warned of a substantial drop in demand for the rest of the year. The company estimated fourth-quarter sales to fall well short of analysts' expectations, primarily due to reduced demand in Europe and the falling U.S. market, particularly in California. This warning had a negative impact on the solar industry as a whole, with the Invesco Solar ETF falling 4.5%. Enphase shares have fallen approximately 65% this year, reflecting the challenges faced by the solar market, including rising interest rates, concerns about the broader economy, and changes in net-metering policies. However, Enphase remains optimistic about the long-term prospects of the business, citing government incentives and the growing adoption of electric vehicles.
