Solar stocks fall overnight as Trump leads in election results

Solar stocks sold off overnight as investors view Donald Trump as the leader in the US presidential election.

Solar stocks are falling on fears that a possible Trump victory would spell trouble for the Inflation Reduction Act, which has fueled a clean energy boom in the U.S. through tax credits for solar power expansion.

The scale Invesco Solar ETF fell 7% in overnight trading with brokerage Robinhood. The manufacturer of solar modules First solar fell 8% overnight. Residential solar stocks Sunrun And Sunnova fell by 6% and 2.6%, respectively. Inverter manufacturer Enphase fell by 5% and Nextracker had fallen by almost 5%.

Trump's campaign platform calls for ending the IRA, which he calls the “Socialist Green New Deal.” The IRA is one of President Joe Biden's signature achievements. The law was passed in 2022 in a party-line vote without Republican support.

According to NBC News, Trump is leading in the Electoral College and is expected to win the key swing state of North Carolina. However, the future of the IRA will depend not only on whether Trump wins the White House, but also on whether the Republicans also gain control of Congress.

Kamala Harris' campaign manager, Jen O'Malley Dillon, told staff in an email Tuesday that the clearest path to victory for the vice president lies in the so-called blue wall states of Pennsylvania, Michigan and Wisconsin.