Tesla announces $10.1 billion plan for massive Texas solar factory

Tesla has put a number on a promise Elon Musk made months ago. A tax-incentive filing in Texas has revealed a $10.1 billion proposal for a solar factory, code-named Project Crystal Sun, offering the clearest look yet at how Musk intends to chase the 100-gigawatt manufacturing target he laid out at Davos in January.

The filing with the Texas government officials states that the plant will be located in Fort Bend County, south-west of Houston, and its commercial operation is anticipated in the first quarter of 2029.

According to Tesla, the plant will have more than 9,700 employees. Although the filing does not state the capacity of the factory in gigawatts, it mentions Musk's statement at the World Economic Forum, where he stated that Tesla and SpaceX are separately aiming for 100 gigawatts per year of produced solar energy in the US, which will take about three years.

The Solar Energy Industries Association reported in August that the US already has 74.1 gigawatts of operational module manufacturing capacity, enough to cover roughly 170% of expected domestic demand in 2026.

Musk's 100-gigawatt target, split between two companies, would still represent a significant leap beyond what the entire US industry currently produces in a year.

The Texas filing shows Tesla plans to manufacture both photovoltaic solar cells and assembled modules, with equipment listed for stages further up the supply chain rather than simple panel assembly alone.

That points to a more vertically integrated operation than Tesla's existing approach. A company spokesperson and representatives listed for Project Crystal Sun did not respond to requests for comment.

Musk's renewed focus on solar has increasingly centred on powering Tesla's AI and robotics operations rather than consumer energy alone. Tesla noted in its July second-quarter shareholder deck that site selection, construction and equipment procurement for both solar and semiconductor manufacturing had progressed.