New Mexico Maxeon deal a mess even before ground broken

Back in mid-April in this space I wrote about the solar company Maxeon which is receiving massive subsidies from both the Biden Administration and New Mexico taxpayers and how the company’s stock price had been plummeting. Maxeon stock has continued its downward trajectory. Its 52-week high was $32.58 per share, and its 52-week low was $1.71 per share. The company‚Äôs stock was trading at $2.02 on Thursday.

There have been numerous other developments with the company that is set to receive $600 million in government incentives. According to the ABQ Journal, China has recently decided to invest $200 million in the company. Remember, the Biden Administration JUST placed 50% tariffs on Chinese solar panels. Also, according to the article, “Maxeon earlier this month announced it received a noncompliance notice from Nasdaq for delaying the release of its annual report. This week, two shareholder rights law firms announced they were investigating the company for potential violations of federal securities laws.”

Is Maxeon the next Solyndra? At Rio Grande Foundation we believe that businesses should rise and fall on their own merits, not subsidies and mandates (in this case from both the federal government and New Mexico). And, while Maxeon and solar MAY be Joe Biden’s “baby,” is there any reason to believe that their likelihood of success will rise under a prospective Trump Administration?

Rather than pouring money into failing businesses New Mexico should be returning those tax dollars to New Mexicans and New Mexico businesses in the form of tax cuts.