The 5-day surge of 40% in solar energy stocks: Can Elon Musk's space concept support Yuanjing's loss predicament?

In just five trading days, Yuanshin’s stock price surged from NT$13.65 to NT$19.25, an increase of over 40%. The trigger behind this strong rally is the “Space AI Data Center” concept proposed by Elon Musk—planning to send servers into space orbit via SpaceX, powered by solar energy.

Theme ignites the Solar Panel Sector, Capital Floods In

Yuanshin’s continuous limit-up performance instantly boosted the entire solar energy stock group. Stocks like Guoguang, Laide, and Jingchen Technology also hit the limit-up, demonstrating the market’s strong capital pursuit.

The rapid heating of this trend is not only due to the imagination of space solar energy but also driven by policy support. The Chinese government promotes the “storage” policy to reorganize excess capacity, which may alleviate vicious price-cutting competition within the industry. Meanwhile, recent revenue recovery signs among Taiwanese solar energy manufacturers have also strengthened market expectations of an industry bottoming out and reversing.

Against this backdrop, solar energy stocks, with their long-term low prices and active trading nature, naturally become the primary targets for capital speculation. If Musk truly launches millions of tons of satellites into orbit annually, each requiring high-performance computing power, the demand for solar modules capable of withstanding harsh space environments (high radiation, low temperatures, low pressure) will grow exponentially.

Bright prospects, but the reality is stark

However, beneath the hype lies a significant gap.

Yuanshin’s total revenue for the first three quarters of this year was NT$1.452 billion, but its after-tax net loss reached NT$773 million, with a loss per share of NT$1.9. In other words, while the stock price is exuberant, the company’s core business is still bleeding. Management admits that the solar industry is currently at a trough, and hopes for profit improvement rely on the government’s “Rooftop Solar Replacement” program, which is expected to show results only by 2026.

The technology for space solar modules is also not to be underestimated. Challenges such as conversion efficiency breakthroughs, durability in extreme environments, and heat dissipation technology are still in the R&D verification stage, and there is a long way to go before commercial-scale application.

Investors Beware: Look Beyond the Hype and Assess Risks First

Analysts’ advice should be taken seriously: stocks like these, due to their active nature and lack of solid fundamental valuation basis, are very susceptible to being tools for major capital inflows and outflows. To participate in the trend, closely monitor margin trading balances and institutional holdings, strictly control investment positions, and avoid getting caught at high prices.

Currently, solar stocks have fully reflected the commercial opportunities of space applications. Whether the subsequent rally can stabilize depends on three major factors: the concrete progress of Musk’s plan, when Yuanshin can turn losses into profits, and whether the global solar industry truly moves toward supply-demand balance. Under the halo of the theme, technological uncertainties and fundamental risks remain the realities in front of investors.