SunPower stock plummets 73% in a week to trade below a dollar as the residential solar company pauses operations

Shares of SunPower tumbled this week after the residential solar installer paused operations as demand for home solar power declines.

The company's shares were down 54% Friday afternoon, trading at $0.68. The stock is down almost 73% over the week.

"We think this effectively marks the end for SPWR as an operating business," Guggenheim analyst Joseph Osha said in a Friday note obtained by CNBC.

The company announced a pause in some operations, including new solar installations, leases and shipments, and said it is looking for other providers to take over sold projects.

Osha said this decision could mark a "winddown process" for the company, which will likely sell remaining assets and delist its stock. Guggenheim Securities cut SPWR's price target from $1 to zero.

The residential solar industry has faced headwinds recently, with demand slowing as interest rates remain high. Tax credits from the Biden administration's Inflation Reduction Act have previously helped the industry, but investors now fear the end of the IRA as the Trump campaign picks up steam ahead of the presidential election.

Osha called SunPower's downfall a "sad end for an industry pioneer."