Billions of tax dollars at risk as MLG doubles down on bankrolling failing solar
Far-left Democrat Gov. Michelle Lujan Grisham remains determined to invest New Mexicans’ tax dollars into the solar industry, despite the sector facing significant financial challenges. Recent efforts to support solar companies with substantial subsidies have raised concerns as these investments appear increasingly risky.
One of the key initiatives involved a partnership with Maxeon Solar, a company that was slated to receive over $2.4 billion in subsidies from various levels of New Mexico’s government. This initiative was part of a broader push to promote “renewable energy” under the industrial policies of the Biden-Harris Administration, which included federal and state incentives. However, despite these massive financial commitments, the Maxeon project has encountered delays, and there is growing skepticism about whether the factory will materialize anytime soon—if at all.
Maxeon’s financial health has deteriorated significantly over the past year. On August 9, 2024, the company’s stock was valued at just 16 cents per share, a staggering 99% decline from its price of $22 per share when the deal was initially announced on August 10, 2023, per analysis from the Rio Grande Foundation.
Even at that time, the stock had already seen a sharp drop from its peak of over $50 per share. The company’s financial struggles are further highlighted by its negative earnings per share (EPS) of -$8.03, signaling ongoing losses.
Undeterred by Maxeon’s setbacks, Lujan Grisham recently inked another deal with a different solar company, “Ebon,” which is based in communist China. New Mexico taxpayers are expected to contribute at least $11 million to back this new venture, although the full extent of the subsidy package has not yet been disclosed by the governor’s administration.
However, Ebon is facing its own financial difficulties. The company’s stock price has plummeted from $388 per share in 2021 to just under $6 per share in 2024, marking a 98.5% decline. Like Maxeon, Ebon also reports negative earnings, with an EPS of -$5.86.
These developments have sparked concern among critics who question the wisdom of pouring significant taxpayer dollars into struggling solar companies. As the solar industry continues to grapple with financial instability, the effectiveness of these investments in driving sustainable economic growth in New Mexico remains uncertain.