Shares of First Solar slumped 16.7% in premarket trading on Wednesday, after the company forecast annual sales below Wall Street expectations amid U.S. policy environment uncertainty and permitting delays under the Trump administration. The solar panel maker on Tuesday said it expects 2026 net sales to be in the range of $4.9 billion to $5.2 billion, compared with analysts’ average estimate of $6 billion, according to data compiled by LSEG. The solar industry faces tariff pressures and a freeze on approvals for major projects under the current administration, as part of an agenda focused on oil, gas, coal and nuclear, diverging from Joe Biden’s green energy policies. First Solar executives said in a post-earnings call on Tuesday that the company expects a total tariff impact of $125 million to $135 million this year. RBC Capital Markets analyst Christopher Dendrinos said the 2026 outlook is below expectations on incremental curtailment activity, but sees this as a clearing event that positions the company for a volume recovery next year, assuming no additional tariffs are imposed. READ MORE: Solar industry accelerates shift from silver as costs soar The company added the demand for its Series 6 solar module, designed for utility-scale solar plants and produced in Malaysia and Vietnam, remains constrained. To address this, First Solar will open a new U.S. finishing line in South Carolina, expected to begin production in the fourth quarter, which will utilize a portion of the front end of these Southeast Asian facilities. The company expects the move would optimize freight, tariffs and domestic content for the sale of incremental products into the U.S. domestic market. “First Solar is well understood to be a 2027 story with several positive catalysts on the way,” said Citi analyst Vikram Bagri.