Mizuho says Tesla competitive concerns for First Solar overdone

Mizuho believes First Solar’s (FSLR) competition concerns around Tesla (TSLA) which drove the stock down 12% yesterday, are overdone. Fully U.S.-made solar modules will be capital intensive, costing more than First Solar’s average selling price, the analyst tells investors in a research note. In addition, Mizuho says industry feedback consistently indicates that scaling polysilicon and wafer capacity takes three-to-four years. It estimates that the U.S. does not currently have sufficient metallurgical-grade silicon supply to support Tesla’s proposed plan. As such, it does not expect any meaningful impact on First Solar’s earnings through at least 2030.