Trump election win sends green energy stock prices tumbling

Shares of several renewable energy companies traded lower on Wednesday after Donald Trump was declared the winner of the presidential election, affording him a second term in the White House.Solar companies were hit particularly hard, with Enphase Energy plummeting more than 18% and First Solar dropping more than 12%.Brookfield Renewable Partners was down over 8%.Shares in European clean energy groups tumbled Wednesday, too.The world’s largest offshore wind developer, Orsted, fell as much as 14%, while wind turbine makers Vestas and Nordex traded down around 11% and 7.6%, respectively.Meanwhile, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all soared to new intraday highs Wednesday morning.Trump’s decisive victory over Vice President Kamala Harris was a blow to the green agenda of the Biden-Harris administration, which significantly ramped up government spending on clean energy alternatives. Biden’s signature Inflation Reduction Act (IRA) of 2022 invested $369 billion in what Democrats labeled “Energy Security and Climate Change” provisions, translating to billions of dollars of incentives and tax breaks intended to reduce carbon emissions 40% by 2030.Trump, on the other hand, has promised to “drill, baby, drill,” embracing America’s fossil fuel industry.

The president-elect has vowed to scrap offshore wind projects through an executive order on his first day in office and to roll back the climate regulations implemented under Biden.Following Trump’s victory, Deutsche Bank wrote in a note to clients, “A full repeal of the IRA would depend on Congress, although significant changes might be possible.” Subscribe to our daily Business Report newsletter! Please provide a valid email address.By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.Price Futures Group senior market analyst and FOX Business contributo...