Tesla Plans $10.1 Billion Solar Manufacturing Plant in Texas

Tesla is considering a major expansion into U.S. solar manufacturing with a proposed $10.1 billion solar factory in Fort Bend County, Texas, about 45 minutes southwest of Houston. The project, known as Project Crystal Sun, could become one of the largest solar manufacturing investments in the United States.

Tesla has applied for tax incentives to help offset the project’s costs, while noting that it is also evaluating other locations in the U.S. If the Texas site is selected, construction could begin in 2026, with completion targeted for 2028 and commercial production expected in 2029.

The facility is projected to create approximately 9,700 permanent full-time jobs, making it a significant economic project for the region. Tesla’s filing did not disclose the plant’s annual production capacity, but the company has previously discussed a broader goal of reaching 100 GW of annual U.S. solar manufacturing capacity together with SpaceX.

The exact end use of the panels remains unclear. They could support conventional ground-mounted solar projects, while Tesla and SpaceX’s growing interest in space-based infrastructure and orbital data centers could create another potential application.

If completed, Project Crystal Sun would represent a major step in Tesla’s strategy to build a large domestic solar manufacturing base and strengthen the U.S. solar supply chain.