Canadian Solar (NASDAQ: CSIQ) experienced a significant after-hours plunge of 6.21% on Wednesday, extending its losses from the regular trading session. The drop comes despite the company announcing new battery energy storage contracts in Germany and Canada, suggesting investor concerns over long-term project timelines and potential execution risks.

Earlier in the day, Canadian Solar revealed that its subsidiary, e-STORAGE, had secured two notable contracts. In Ontario, Canada, the company will provide a fully integrated energy storage solution for the 411 MW/1,858 MWh Skyview 2 Energy Storage Project, with shipments scheduled to begin in February 2026 and commercial operations starting in the second quarter of 2027. Additionally, e-STORAGE signed an agreement to supply a 20.7 MW battery energy storage system for a project in Germany, with deliveries set to commence in March 2026.

While these contracts demonstrate Canadian Solar's expanding presence in the energy storage market, the extended timeline for project delivery appears to have disappointed investors looking for more immediate revenue impact. The after-hours sell-off may reflect growing concerns about the company's ability to execute these large-scale projects effectively or expectations of even larger contracts. As Canadian Solar continues to build its energy storage business, market participants will likely scrutinize the company's capacity to meet project milestones and translate these long-term agreements into tangible financial results.