Tesla has filed a $10.1 billion proposal for a solar factory in Texas, code-named Project Crystal Sun, giving the clearest look yet at how Elon Musk could pursue his push to expand US solar manufacturing. The plant would employ more than 9,700 people, but Tesla says the project isn't final and depends on winning tax incentives.
Tesla has filed a $10.1 billion proposal for a solar factory in Texas in a tax-incentive application for a plant code-named Project Crystal Sun, to be built in Fort Bend County, southwest of Houston. The filing gives the clearest look yet at how Musk could pursue his push to expand US solar manufacturing.
A factory tied to a 100 GW goal
The application doesn't detail the factory's gigawatt output capacity. Instead, it cites a statement Musk made at the World Economic Forum in January, in which he said Tesla and SpaceX are each working toward large-scale solar manufacturing in the US. According to Business Insider: "The SpaceX and Tesla team, both separately, are working to build to 100 GW" a year of manufactured solar power, Musk said, adding that the effort would probably take three years.
For context, the Solar Energy Industries Association reported in August that the US currently has 74.1 GW of operational module manufacturing capacity, which is enough to supply about 170% of expected US demand in 2026.
What the plant would produce
The Texas filing said Tesla would manufacture photovoltaic solar cells and/or assembled solar modules, while also listing equipment tied to earlier stages of the solar supply chain. The application said the facility would be expected to begin commercial operations in Q1 2029 and employ more than 9,700 people full time. A Tesla spokesperson and representatives for Project Crystal Sun did not respond to a request for comment.
Solar feeds Tesla's AI push
Musk has increasingly focused on solar as an energy source for Tesla's AI and robotics ventures, Business Insider previously reported. Tesla's July second-quarter shareholder deck said site selection, preparation, construction, and equipment procurement for solar and semiconductor manufacturing had progressed. Beyond Tesla, other hyperscalers have shown how AI is fueling demand for new energy infrastructure — in Louisiana, a solar project is being built to help power Meta's Hyperion AI data center.
Still an open question
Crystal Sun isn't a done deal. Tesla said it's considering another US location and that the Texas site would be less competitive without the economic incentives it's now seeking from state and local officials. If approved, Tesla said it expects construction to begin this year and finish in 2028.
Source: Business Insider
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