Tesla plans to build a solar panel manufacturing facility near Houston that could cost as much as $10.1 billion, according to documents filed with the Texas Comptroller’s office. The project, called Project Crystal Sun, would be located roughly 45 minutes southwest of Houston and would create approximately 9,700 full-time jobs.
Tesla applied for tax incentives to offset the cost, telling the state it is evaluating alternative sites across multiple US states. The company’s accountants estimated that without incentives, the property tax liability over 37 years would reach about $1.1 billion. The factory aims to break ground this year and reach completion by 2028, with the first solar panels expected off the production line in 2029.
Tesla has not disclosed the factory’s projected annual output, but the company previously stated a goal of building 100 gigawatts worth of US manufacturing capacity by 2028. Whether the panels will be destined for ground-based residential and commercial installations or for satellite-based solar arrays remains unclear, though CEO Elon Musk has expressed interest in orbital data centers powered by space-based solar.
The filing comes amid a broader push by Tesla into energy manufacturing beyond electric vehicles. The company has been ramping hiring for its expanded solar strategy and is also developing a separate chip fabrication facility called Terafab in Texas through a joint venture with SpaceX worth $16.8 billion.
Texas has been a favored destination for large-scale manufacturing investments, with Tesla already operating its main Gigafactory in Austin. The state’s relatively low regulatory environment and generous incentive packages have attracted billions in commitments from technology and energy companies.
The solar factory announcement arrives as the global solar manufacturing market faces intense competition from Chinese producers, which dominate the supply chain for polysilicon, wafers, and finished panels. US solar manufacturing has historically struggled to compete on cost, though federal tax credits under the Inflation Reduction Act have improved the economics for domestic production.
If completed, Project Crystal Sun would represent one of the largest solar manufacturing investments in US history and would give Tesla a vertically integrated position in both energy generation and storage through its Powerwall and Megapack battery products.
Sources: TechCrunch, Reuters
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