Enphase CEO says solar industry poised to rebound on falling interest rates and rising utility costs
Rafael Henrique | Lightrocket | Getty Images
Enphase Energy sees light at the end of the tunnel this year for the solar market after the industry has taken a beating from high interest rates.
High rates have depressed demand for residential solar installations in 2023, leaving companies such as Enphase saddled with too much inventory. Enphase manufactures inverters that convert solar energy into electricity that is compatible with the grid.
CEO Badri Kothandaraman is forecasting the company will see a bottom in the first quarter this year and then start to recover in the second quarter as a stuffed inventory channel is cleared.
Kothandaraman said rising utility rates combined with falling interest rates should also provide tailwinds this year.
“Make no mistake, utility rates are going up,” Kothandaraman told CNBC in an interview. “The interest rates are not going to be staying the same. People are finding better financial instruments like third-party leases.”
“All of those won’t move the market overnight but they are all steady steps to make sure that the industry will grow long term,” he said.
Enphase, YTD
Enphase shares soared more than 17% Wednesday despite the company reporting fourth-quarter earnings and revenue Tuesday afternoon that missed Wall Street estimates.
Enphase’s net income dropped 86% to $20.9 million in the fourth quarter compared to the year-ago period. The company’s revenue was down 58% to $302 million compared to the same quarter in 2022.
But Kothandaraman’s forecast that the solar market is on the road to normalization is lifting not just Enphase’s stock, but also the industry more broadly. The Invesco Solar ETF rose more than 5% in Wednesday afternoon trading.
Shares of Enphase’s competitor SolarEdge jumped more than 13%. The residential solar installers Sunnova and Sunrun were up about 14.5% and 5.2%, respectively.
Wall Street analysts’ reaction to Enphase’s earnings were mixed despite the stock rallying Wednesday. Bank of America’s Julien Dumoulin-Smith slashed his stock price target for Enphase by $3 to $69, which implies 31% downside from the company’s Tuesday close of $100.51.
“With limited visibility to a full recovery, we remain cautious on the outlook,” Dumoulin-Smith told clients in a Wednesday morning note.
Oppenheimer analyst Colin Rusch upgraded Enphase to outperform with a price target of $133, implying 32% upside from Tuesday’s close.
“While we expect ongoing volatility in shares, we are upgrading as we believe downside scenarios will now be fully built into expectations,” Rusch told clients in a Wednesday note.
— CNBC’s Pippa Stevens contributed to this report.
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With its tire-blistering acceleration and record-setting performance, the Xiaomi SU7 Ultra has been getting attention throughout the auto industry, impressing everyone who’s seen it. That “everyone” now seems to include the OG supercar brand, itself.
CarNewsChina posted pictures from a Weibo user that reportedly show a Xiaomi SU7 Ultra exiting the storied Ferrari factory in Maranello, Italy. According to a Chinese blogger going by 西米露在博洛尼亚 (which seems to translate to “Sago Dessert in Bologna”), the prancing horse brand is actively benchmarking the Chinese hypercar for its own upcoming EV.
The SU7 Ultra was definitely coming from inside Ferrari’s facility. After verification, we learned this specific vehicle was officially purchased by Ferrari for testing, and the development of their next-generation electric platform.
Yet another Chinese auto blogger, 苏黎世贝勒爷, claims that Ferrari representatives visited Xiaomi headquarters last year, allegedly to discuss the joint development of next-generation high-performance EV motors.
The Xiaomi SU7 Ultra made its debut last year, promising 1,548 hp, sub 2.0-second 0-60 mph times, and a top speed well over 200 mph – all at a price lower than a Tesla Model S Plaid or Porsche Taycan Turbo GT. The car sold out almost immediately after it was unveiled, racking up some 50,000 orders almost overnight.
The new electric benchmark
In the automotive world, “benchmarking” is a process in which car companies systematically tear down each others’ competitive products to compare everything from sound insulation, vehicle ride and handling, component materials, and even manufacturing methods against their own or against other industry leaders. The goal is to evaluate performance, cost, quality, and other key metrics, effectively figuring out “where they stand” in the market.
If Ferrari really did buy an SU7 to benchmark it against their own upcoming electric supercar, it’s more than just a curiosity – it could mean that the highest tiers of automotive innovation have shifted from West to East. Maybe forever.
Featured image via Xiaomi; sources throughout the post.
If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
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We’re finally getting our first teases of the upgraded 2027 Chevy Bolt, built on GM’s battery/motor platform formerly known as Ultium. So far, so good for the vehicle, which will be revealed later this Fall.
Chevy took to social media today to tease the 2027 Chevy Bolt, saying, “You asked, we listened. The #ChevyBolt is back and better than ever. More this fall. 👀”
Chevy ended the original Bolt program with the 2023 model, which was loved by a loyal group of customers (including myself). Some of the major gripes, including charging speed and rear brake lights, already look to be addressed. Also, a new more aggressive fascia is debuting.
Electrek’s take
GM has done an incredible job keeping the 2027 Bolt under wraps. It will be the first GM vehicle with a native NACS port after the Cadillac Optiq-V, which we spied in Seattle last week.
Hopefully, the new Bolt will have improved charging speeds over and above the 54kW that previous Bolts adhered to. One possible downgrade is that the old Bolt’s amazing wireless CarPlay/Android Auto system will likely be replaced by GM’s move to Android’s built-in experience. For a few years, the Chevy Bolt was the most affordable long-range EV, and it won our 2022 Electrek car of the year for its versatility and price.
I would, of course, like to see the new Bolt as a hot hatchback, but GM CEO Mary Barra has hinted that it will likely take more of the EUV’s SUV form factor. Things like AWD options, SuperCruise, pricing, power and range are yet to be revealed, but stay tuned to Electrek for the latest on Bolt developments.
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On today’s test-acular episode of Quick Charge, it’s a new day and a new Chinese ADAS test for Tesla to conquer – but this one’s got a LOT more pedestrian carnage to parse through! We’ve also got some great e-bike deals from Retrospec and a bladder-busting Hyundai.
Today’s episode is brought to you by Retrospec – the makers of sleek, powerful e-bikes and outdoor gear built for everyday adventure! To that end, we’ve got a pair of Retrospec e-bike reviews followed up by the updated Hyundai IONIQ 6 with nearly 350 miles of range from its updated long-range battery. With that, Hyundai now has the longest range Korean EV on the market, while Texas is adding megawatts of battery energy storage to beef up its troubled grid, and it’s doing so faster and cheaper than ever before.
Plus: Quick Charge listeners can get an extra 10% off the price of their next awesome e-bike by using code ELECTREK10 at retrospec.com!
Source Links
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If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
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