Market Insider

Shares of First Solar still higher after White House denies carbon tax

White House: Carbon tax & VAT are not under consideration

This story has been updated.

The White House denied that it is currently considering a carbon tax as part of the Trump administration's tax plan.

Shares of First Solar moved less than one percent lower in extended trading Tuesday following the denial from the White House. The stock fluctuated after the bell and was 0.22 percent lower.

During the trading day, First Solar shares popped 2 percent on Tuesday after The Washington Post reported the White House is considering a carbon tax.

The measure is one among multiple ideas to replace government revenue that could be lost with expected corporate and individual tax reform from the Trump administration.

The solar energy company is not the only stock in the sector that saw its share price rise following the report. Shares of Canadian Solar were up 1 percent and SunPower shares were up 2 percent.

A carbon tax would deter businesses from releasing emissions of carbon dioxide to decrease human contributions to climate change.

White House officials did not lay out any finalized details and said that a carbon tax is only being discussed, according to The Washington Post report. The tax is a controversial issue that would face some opposition within the Democratic and Republican parties.

The White House did not immediately respond to CNBC's request to comment.

That said, shares of First Solar are still down 60 percent in the last 12 months.

First Solar shares 12-month performance

Source: FactSet

— CNBC's Jacob Pramuk contributed to this story.

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