(Reuters) - Shares of First Solar Inc (FSLR.O) fell 18 percent after a report that the company had halted deliveries to a photovoltaic power plant it is building in Arizona.
The Tempe, Arizona-based company’s shares fell to a two-week low of $19.68 in late-afternoon trading on Thursday. The stock was one of the top percentage losers on the Nasdaq.
Bloomberg said construction of First Solar’s Agua Caliente project is ahead of schedule and the company must slow down to meet contractual milestones.
The company would not ship additional modules until January to the $1.8 billion project and would not install panels currently sitting on the ground at the site, Bloomberg said, quoting the power plant’s construction manager, Fred Pech.
Mark Bachman of Avian Securities LLC told Reuters the stock’s fall is an over reaction.
Bachman said the company’s action did not put its 2012 guidance at risk and that it “doesn’t change anything with the project pipeline”.
Reporting By Vishal Krishnan Menon in Bangalore; Editing by Maju Samuel