The photo voltaic industry is going through a constellation of points this yr together with increased costs for metal and aluminum, in addition to elevated freight prices. SolarEdge’s disclosure got here per week after rival solar-parts maker Enphase Energy Inc. mentioned there’s no signal the worldwide scarcity of semiconductor parts will abate any time quickly.
“Boiling the bevy of issues down, they all impact gross margins — and gross-margin trends historically have been leading indicators of how the stocks trade,” Jeff Osborne, an analyst at Cowen & Co., mentioned in an e-mail.
In early April, Maxeon Solar Technologies Ltd. mentioned “the solar industry faces pervasive upstream supply chain cost challenges.” The panel producer mentioned then that elevated prices for glass, photo voltaic cells and freight “may persist well into the second half of 2021.”
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