Tesla has proposed a $10.1 billion solar manufacturing facility in Texas, including $8.6 billion in personal and $1.5 billion in real property investment
The project may include ingot and wafer manufacturing equipment, along with cell production systems, suggesting potential for greater vertical integration
Tesla estimates the project could create 9,712 permanent jobs and up to 1,147 construction jobs
US automotive and space technology giant Tesla is formalizing its previously disclosed plans to launch a large-scale solar PV manufacturing facility. It plans to develop a solar cell manufacturing facility, with an estimated investment of $10.1 billion.
Tesla has filed documents with the Texas Comptroller of Public Accounts for what it calls Project Crystal Sun under the Jobs, Energy, Technology & Innovation Act (JETI). The factory will produce solar PV cells and/or assembled solar modules for utility-scale, commercial, and distributed solar installations. The company has not disclosed the planned annual production capacity of the said project.
The proposed investment includes about $8.6 billion in personal and $1.5 billion in real property. It states that the real and personal property improvements for the proposed project would include equipment for ingot and wafer manufacturing, as well as coating, metallization, printing, cell testing, and quality control.
The mention of ingot and wafer equipment suggests that Tesla could be pursuing a more vertically integrated solar manufacturing setup. However, the application does not explicitly describe the project's level of integration or include polysilicon manufacturing.
It expects the facility to enter construction in 2026 and enter commercial operations in Q1 2029. The company is seeking tax incentives under JETI and has also identified potential federal support under Sections 45X (Advanced Manufacturing Production) and 48D (Advanced Manufacturing Investment).
In its proposal to the Texas administration, Tesla said it is evaluating the feasibility of constructing its cell manufacturing facility at various locations across multiple US states. Incentives will make the Texas site more competitive with another location under evaluation, it adds.
“Should Tesla make the decision to develop the proposed project in another state, Texas would miss the opportunity to attract billions of dollars in investment, help create thousands of full-time jobs for its residents, and become a hub for domestic solar cell manufacturing in the U.S.,” says Tesla.
The project is estimated to create 9,712 permanent full-time jobs and as many as 1,147 jobs during construction. It will also likely generate around $4 billion in total direct state- and local-tax revenue, according to the company. It adds that Texas's GDP would increase by close to $107 billion as a result of the project.
Tesla’s application to Texas follows the company's CEO, Elon Musk, announcing in January 2026 that Tesla and SpaceX were working towards manufacturing 100 GW of solar power annually in the US to ensure power supply for AI data centers (see Elon Musk Says SpaceX, Tesla Eye 100 GW/Year US Solar Manufacturing).
In March 2026, Tesla was reportedly in talks with Chinese solar PV equipment suppliers to procure machines worth $2.9 billion to produce solar cells and modules in the US (see North America Solar PV News Snippets).
