Tesla plans to invest $10.1 billion in the construction of a solar cell manufacturing plant near Houston, Texas. This project, named Project Crystal Sun, is part of a broader strategy to expand solar energy production in the United States over the coming years. The new facility will focus on producing photovoltaic cells and assembling solar modules for utility, commercial, and residential sectors. According to documents submitted to the Texas tax authorities, the project is expected to create 9,712 permanent jobs and support over 1,000 construction jobs at the site in Fort Bend County. If an agreement is reached between Tesla and state officials, construction could begin as early as this year, with the plant scheduled to launch operations in the first quarter of 2029.

Joint Goals of Tesla and SpaceX

Tesla and SpaceX are working together to establish manufacturing capacity for producing 100 gigawatts of solar energy annually within the United States. Earlier this year, the companies’ CEO announced plans to scale up domestic solar panel production, taking into account the lower cost of similar products made in China.

SpaceX has applied for permits to build a 10-gigawatt solar cell manufacturing plant in Bastrop, Texas. This facility will provide aerospace infrastructure for the company’s own orbital data centers.

Current Capacity and Expansion Plans

Currently, Tesla develops solar panels and systems in California, with assembly taking place in Buffalo, New York, at a facility with an annual capacity exceeding 300 megawatts. The implementation of the Crystal Sun project will significantly boost the company’s manufacturing capabilities.

Tesla is considering several locations across the U.S. for the new plant, but the documents only mention the site in Fort Bend County. The company is seeking state support to offset property taxes, including incentives under the Texas Jobs, Energy, Technology and Innovation Act. Without such tax benefits, the Fort Bend site would be less competitive compared to other options.

Financial Performance and Outlook

In the first half of the year, Tesla’s energy generation and storage division—which includes solar and battery systems—generated $5.5 million in revenue, comparable to the same period last year. Although energy accounts for a smaller share of revenue compared to the automotive business, the company emphasizes its focus on expanding energy storage production and advancing solar panel and battery technologies.

The growing demand for electricity is linked to the electrification of transportation and the rise of artificial intelligence. Tesla is working to develop advanced infrastructure and manufacturing capacity to meet these needs.

Additional SpaceX Investments

SpaceX has begun implementing plans to invest $16.8 billion in building a Terafab semiconductor manufacturing plant covering 100 million square feet in Grimes County, Texas. The first phase of construction will start this year and is expected to create 3,000 jobs.