First Solar (FSLR) shares tumbled 10.63% in pre-market trading on Tuesday, following news that Senate Republicans have proposed changes to President Donald Trump's tax-cut and spending bill that would phase out solar and wind energy tax credits by 2028. This move has sent shockwaves through the entire solar energy sector, with multiple companies experiencing significant declines.

The modified text of Trump's "One Big Beautiful Bill Act" includes a proposal to reduce solar incentives to 60% of their current value by 2026, ultimately ending them by 2028. This potential blow to solar companies comes at a time when the U.S. residential solar market is already facing challenges due to high interest rates and metering reforms in key markets like California.

The impact of this proposed legislation extends beyond First Solar, with other major players in the solar industry also experiencing sharp declines. Sunrun (RUN) fell 27%, SolarEdge Technologies (SEDG) dropped 21%, and Enphase Energy (ENPH) decreased by 17% in pre-market trading. The broader implications of these changes could significantly alter the landscape of the renewable energy sector in the United States.