Maxeon’s 8-day Rally Ends As Biden’s Tax Plan For Mexico Imports Remains In Limbo, But Retail Sentiment Shifts Bullish
By Stocktwits Inc | First Published Dec 28, 2024, 12:51 AM ISTMaxeon’s solar panels have been detained at the Mexican border by the U.S. Customs and Border Protection (CBP) since Jul. 2024.
Shares of Maxeon Solar Technologies (MAXN) slipped nearly 7% in mid-day trade on Friday, ending the stock's eight-day rally set off by reports that the Biden administration may exempt Mexico from tariffs on imported solar equipment – a change that would primarily benefit Maxeon.
According to Bloomberg, citing people similar to the matter, senior officials within the Biden administration were weighing trade policy discussions involving Mexico and longstanding administration struggles to nurture domestic clean energy manufacturing without chilling solar power deployment that has for years relied on cheap foreign-made equipment.
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Maxeon’s solar panels have been detained at the Mexican border by the U.S. Customs and Border Protection (CBP) since Jul. 2024 while officials assess the company’s compliance with trade curbs meant to discourage alleged human rights abuses in China.
According to the company’s latest statement on the issue, the detention has affected multiple product lines, including residential solar modules Maxeon 3 and Maxeon 6 and Performance 6 commercial modules.
In November, the company announced a broad restructuring, shifting to focus exclusively on the US market and selling off other operations.
Retail sentiment around the stock flipped to ‘extremely bullish’ from ‘neutral’ a day ago, as chatter increased to ‘high’ from ‘low’ levels.
Investors on the platform believe that the company will come out ahead regardless of whether Mexico tariffs are exempt or increased, as expected when President-elect Donald Trump gets sworn in on Jan. 20.
Several investors consider Maxeon a meme stock, given its volatile nature and generally high short interest.
The stock has lost nearly all its value so far this year, down over 98%.
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