Shares of AES Corporation (AES), a leading renewable energy company, plummeted over 11% in pre-market trading on Wednesday as investors reacted to the unexpected victory of former President Donald Trump in the 2024 U.S. presidential election.
Trump's victory has raised concerns among investors about the potential impact on the renewable energy sector. During his previous term, Trump pursued policies that favored fossil fuels over clean energy sources and rolled back environmental regulations aimed at combating climate change.
Analysts warn that Trump's administration could upend the green policies implemented by the current administration, including solar tax credits and incentives that were part of President Joe Biden's Inflation Reduction Act. "The renewables sector might face downward pressure if Trump prioritizes fossil fuels over green energy and scales back clean energy incentives or environmental regulations," said Daniela Sabin Hathorn, senior market analyst at Capital.com.
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