Tesla Plans $10.1 Billion Solar Panel Factory in Texas

Tesla is considering a major expansion into U.S. solar manufacturing, with plans for a new solar panel factory near Houston, Texas.

According to documents submitted to the Texas government, the proposed “Project Crystal Sun” could represent an investment of up to $10.1 billion and create around 9,700 full-time jobs.

Tesla has applied for tax incentives to help offset the project's costs and said it is also evaluating potential locations in several other U.S. states.

Construction is expected to begin this year, with the facility targeted for completion in 2028 and its first solar panels scheduled to roll off the production line in 2029. Tesla has not yet disclosed the plant's annual manufacturing capacity or confirmed whether the panels will be used primarily for terrestrial solar projects or future space-based applications.

The project could also have a significant long-term economic impact. Tesla's accountants estimate that without tax incentives, the facility could face approximately $1.1 billion in property taxes over 37 years.

The planned factory comes as Tesla targets 100 GW of solar panel manufacturing capacity in the U.S. by 2028. Meanwhile, CEO Elon Musk has also expressed strong interest in orbital data centers, raising the possibility that Tesla's future solar technology could eventually serve both terrestrial and space-based energy markets.

Project Crystal Sun could become one of the largest new solar manufacturing investments in the U.S., strengthening domestic PV production while giving Tesla a potentially broader role in the future energy industry.