Editing First Solar, Inc.
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=== Qualitative risks === | === Qualitative risks === | ||
The key risks of an investment in First Solar, in order of importance (from highest to lowest) | The key risks of an investment in First Solar, in order of importance (from highest to lowest) are as follows: | ||
# Competition in solar markets globally and across the solar value chain is intense and could remain that way for an extended period of time. The solar industry may experience periods of structural imbalance between global PV module supply and demand that result in periods of pricing volatility. If First Solar's competitors reduce module pricing to levels near or below their manufacturing costs, or are able to operate at minimal or negative operating margins for sustained periods of time, or if global demand for PV modules decreases relative to installed production capacity, First Solar's business, financial condition, and results of operations could be adversely affected.<ref name=":0">https://d18rn0p25nwr6d.cloudfront.net/CIK-0001274494/7ad6d7b0-00aa-4bb3-b61f-fd0fd17740e2.pdf</ref> | # Competition in solar markets globally and across the solar value chain is intense and could remain that way for an extended period of time. The solar industry may experience periods of structural imbalance between global PV module supply and demand that result in periods of pricing volatility. If First Solar's competitors reduce module pricing to levels near or below their manufacturing costs, or are able to operate at minimal or negative operating margins for sustained periods of time, or if global demand for PV modules decreases relative to installed production capacity, First Solar's business, financial condition, and results of operations could be adversely affected.<ref name=":0">https://d18rn0p25nwr6d.cloudfront.net/CIK-0001274494/7ad6d7b0-00aa-4bb3-b61f-fd0fd17740e2.pdf</ref> | ||
# The reduction, elimination, or expiration of government subsidies, economic incentives, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications, or other public policies could negatively impact demand and/or price levels for First Solar's solar modules. The imposition of tariffs on First Solar's products could materially increase its costs to perform under its contracts with customers, which could adversely affect its results of operations.<ref name=":0" /> | # The reduction, elimination, or expiration of government subsidies, economic incentives, tax incentives, renewable energy targets, and other support for on-grid solar electricity applications, or other public policies could negatively impact demand and/or price levels for First Solar's solar modules. The imposition of tariffs on First Solar's products could materially increase its costs to perform under its contracts with customers, which could adversely affect its results of operations.<ref name=":0" /> |