Tesla is considering a major new solar manufacturing facility in Texas as Elon Musk pushes to dramatically expand US solar production and secure more energy for his companies’ growing AI and robotics operations.
According to a tax-incentive application filed in Texas, Tesla has proposed investing roughly $10.1 billion in a solar factory known internally as Project Crystal Sun. The facility would be located in Fort Bend County, southwest of Houston, and could employ more than 9,700 full-time workers once operational.
Tesla expects the proposed factory to begin commercial operations in the first quarter of 2029. If approved, construction could start this year and continue through 2028.
The filing does not specify exactly how much solar manufacturing capacity the facility would provide. However, it references Musk’s previously announced goal for Tesla and SpaceX to each build toward 100 gigawatts of annual solar manufacturing capacity in the United States.
Musk has suggested that reaching that level could take roughly three years. If achieved, the scale would be significant compared with the country’s existing solar manufacturing industry.
The Solar Energy Industries Association reported that the US currently has about 74.1 GW of operational solar module manufacturing capacity. That means the 100 GW annual target discussed by Musk for either Tesla or SpaceX individually would exceed the country’s current total capacity.