First Solar Shares Plunge as CEO Rob Gillette leaves the Company (FSLR)

Shares of First Solar Inc. (NASDAQ: FSLR) have fallen sharply in trading today after the company’s CEO, Rob Gillette left the company. Gillette’s sudden departure has fueled speculation about the health of the company.

First Solar, which designs, constructs and sells PV solar power systems, did not give any reason for Gillette’s departure. The company said that Gillette is no longer serving as CEO, effective immediately. The company has appointed founder and Chairman Mike Ahearn as its interim CEO.

Gillette’s departure has raised concerns about the health of the solar modules manufacturer. First Solar has already had a tough year so far as it faces price war on solar panels. The uncertainty in Europe, one of the First Solar’s key markets, has also hurt the company this year.

According to Gordon Johnson, head of alternative energy research and managing director of Axiom Capital Management, Gillette’s departure is not a good sign. Johnson speculates that Gillette left as he may have been reluctant to sign off on a new accounting plan by First Solar. Under the new accounting plan, First Solar is looking to book up-front revenue on projects.

Johnson said in a research note to his clients that First Solar suffered another setback this week after reports that the company’s discussions with Enbridge to sell its Topaz solar project have fallen apart. The company had announced the sale of Topaz solar project after failing to get a federal loan guarantee from the Department of Energy recently.

Following the reports of the departure of Gillette, First Solar shares fell sharply. The stock fell to a new 52-week low of $42.50 in trading today. At last check, the stock was down 25.56% to $43.14 on above average volume of 20.10 million.

First Solar shares have had a tough year so far, falling 67.02%.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.