Evergreen Solar Stocks Fall: China Not Enough?

The solar panel manufacturer Evergreen Solar was lured to set up shop in Massachusetts by lucrative tax breaks and even grant money put together by renewable energy fan Governor Deval Patrick. But the company is moving a part of their production practice to China (see Connie’s post on the move for more info). While the state is understandably aggrieved by this decision, stock analysts think it’s a good choice: Evergreen has been struggling with cash flow to the point of having to downsize, and cutting costs however possible does make sense even if it’s not a palatable or socially responsible decision.

However, this move hasn’t been enough to stop the downward spiral of Evergreen’s public shares. Forbes reports on today’s prices in stark contrast to where the company was at one year ago:

[Evergreen Solar's] shares were down 8 percent at $1.42 in afternoon trading on Friday on the Nasdaq. The stock has lost more than 70 percent of its value since hitting a year high of $5.20 in November 2008.

The solar panel glut of the past year, falling panel prices, and stiff international competition have all contributed to Evergreen’s slide. The move to China may staunch the bleeding, but will it be enough to put the company back in the black, especially now that it has effectively ostracized itself from the Patrick administration? Keeping solar panel manufacturing on home shores should be a concern of President Obama as well–this may require more creative problem-solving than just shifting to offshore production.