Bullish option traders are logging extraordinary gains in T1 Energy Inc. (TE) as the solar manufacturing company executes a stunning turnaround driven by domestic production tax credits and strategic pivots.
On Oct. 6, Market Rebellion’s Unusual Option Activity Service our Unusual Activity Service identified significant bullish call buying, with 2,000 17April 5 calls bought for $0.35-$0.40 above the existing open interest of 691 contracts, with TE shares trading at $2.61-$2.67.
Those 17April 5 calls last traded at $4.10 with the stock at $8.74, delivering extraordinary returns of approximately 993.33% from the initial midpoint entry price of $0.375. Meanwhile, TE shares gained approximately 231.06% from their initial midpoint trading level around $2.64, demonstrating how options can deliver dramatically amplified returns compared to simply owning the underlying stock.
This performance illustrates the exceptional power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.
$160 Million Tax Credit Sale Validates Business Model
The most recent catalyst driving TE’s rally came on December 30, 2025, when the company announced its first successful sale of Section 45X production tax credits to a leading investment-grade buyer for $160 million. The sale encompassed credits accrued and verified through December 2025, with credits sold at a ratio of $0.91 per dollar of PTC generated—in line with industry benchmarks.
Chief Financial Officer Evan Calio emphasized that “validating our ability to monetize these credits is an important step for T1 as we continue to invest in advanced American manufacturing and grow our domestic production capacity at G1_Dallas, which is fully ramped, and at G2_Austin, our U.S. solar cell fab that is now under construction.” The transaction, advised by Citigroup Global Markets, provides immediate liquidity without traditional debt or equity dilution, dramatically improving the company’s cash position to fund capital expenditures.
The Section 45X advanced manufacturing production credit provides a per-watt incentive for solar components produced within the United States. By successfully monetizing $160 million in credits in its first transaction, T1 Energy demonstrated its ability to generate substantial non-operational cash flow from its domestic manufacturing activities—a game-changing development for a company that had been struggling financially just months earlier.
FEOC Compliance Unlocks 2026 Tax Credit Eligibility
On the same day as the tax credit sale announcement, T1 Energy revealed it had completed a complex series of transactions with Trina Solar and other parties to ensure continued eligibility for Section 45X credits in 2026 and beyond by avoiding designation as a Foreign Entity of Concern (FEOC) under the One Big Beautiful Bill Act.
The compliance efforts included amending the corporate charter to limit FEOC equity holdings, substantially reducing Trina Solar’s debt stake below the OBBBA threshold through capital raises and debt repayment, removing Trina’s right to appoint covered officers, transferring licensed intellectual property to Evervolt (now T1’s licensor), and implementing procurement steps toward non-FEOC solar cells with increased domestic sourcing.
Alliance Global Partners called these compliance actions a “major de-risking event,” as maintaining Section 45X eligibility is critical to T1’s financial viability. The successful navigation of FEOC regulations positions T1 to continue monetizing production tax credits throughout 2026 and potentially through 2032, when the credits are currently scheduled to expire under Congressional budget proposals.
G2 Austin Solar Cell Fab Construction Begins
Adding further momentum, T1 Energy announced on December 17, 2025 that construction had begun on its G2_Austin solar cell fab—a 2.1 GW facility in Milam County, Texas that represents the first phase of a planned 5 GW integrated solar cell manufacturing complex. The facility will produce solar cells domestically, addressing a critical supply chain gap as the United States currently imports the vast majority of solar cells from Asia.
The G2_Austin project leverages domestic supply agreements with major U.S. manufacturers including Hemlock Semiconductor for polysilicon, Corning for wafers, and Nextpower for frames. This vertically integrated domestic supply chain allows T1 to stack Section 45X tax credits from both cell and module production, potentially contributing meaningfully to EBITDA generation starting in 2026.
Alongside the manufacturing buildout, T1 announced on December 22, 2025 a strategic three-year partnership with Treaty Oak Clean Energy to supply a minimum of 900 MW of solar modules. The contract provides revenue visibility and validates customer demand for FEOC-compliant, high-domestic-content solar products as utilities and developers increasingly prioritize secure, traceable supply chains.
Multiple Analyst Upgrades Signal Momentum Shift
The operational progress triggered a wave of Wall Street support. On December 30, 2025, Alliance Global Partners initiated coverage with a Buy rating, calling the FEOC compliance transactions a major de-risking event. Roth Capital raised its price target from $7 to $15 on December 23rd, representing over 100% upside from then-current levels. Johnson Rice also initiated with a Buy rating on December 1st.
The analyst community increasingly views T1 Energy as uniquely positioned to benefit from the intersection of clean energy policy, domestic manufacturing incentives, and AI-driven power demand. The company’s transformation from FREYR Battery (a struggling battery manufacturer) to T1 Energy (a leading U.S. solar manufacturer) through the December 2024 acquisition of Trina Solar’s Texas module facility has fundamentally revalued the equity.
The convergence of the $160 million tax credit sale, FEOC compliance ensuring 2026 eligibility, G2_Austin construction launch, Treaty Oak partnership, and multiple analyst upgrades created an ideal environment for the April 17th call options to capture extraordinary upside. The timing of the call buying on October 6th at 11:19 AM—positioned at $2.61-$2.67 when the stock was deeply distressed—demonstrates the exceptional nature of the unusual options activity that preceded one of 2025’s most dramatic turnaround stories.
TE was last up 10.5% at $8.69.
