The final order from the U.S. Trade Representative includes an interim tariff rate of 10% set to start on September 24.
The microinverter maker is shifting production to Mexico to avoid the pending Section 301 tariffs on inverters and other products from China.
While the microinverter maker is still the target of an aggressive short, Roth Capital Partners has reiterated its “buy” at $6.50 per share, describing the IQ8 as a “game changer”.
The deal gives SunPower $25 million in cash and 7.5 million shares in Enphase. Enphase also gains access to SunPower microinverter IP, and rights to SunPower’s Equinox AC modules line.
The company has brought its operating margin to below -1%, as it fends off component shortages, short sellers and potential tariffs.
GTM Research says the 10% tariffs that the Trump Administration is calling for are “significant”, and some companies and sectors will be affected more than others.
Through the deal SunPower gets $25 million and stock; however the bigger deal may be Enphase’s right to be the company’s exclusive residential inverter supplier.
The microinverter maker is reporting only modest losses in its Q1 results, a significant improvement from a year ago.
The company has registered as a lobbyist with K Street’s most experienced WTO law firm – Sidley Austin LLP.
The struggling microinverter maker narrowed losses considerably in Q4, as it unveils new products and expands in new markets.
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