Tesla plans solar panel factory near Houston that could cost up to $10.1B

Tesla intends to build a massive solar panel factory 45 minutes southwest of Houston, according to documents the company filed with the state of Texas. The facility, called Project Crystal Sun, could cost as much as $10.1 billion.

Tesla has applied for tax incentives to partially offset the cost, while saying it is also exploring other sites across multiple U.S. states. The factory would create about 9,700 full-time jobs, according to the company. Without incentives, Tesla’s own accountants estimated the project’s property tax liability at about $1.1 billion over 37 years.

The project aims to break ground this year and be completed by 2028, with the first solar panels expected to roll off the line in 2029, Tesla said. The company has not indicated whether the panels would be destined for terrestrial installations or satellites — notable given that Tesla CEO Elon Musk, who also runs SpaceX, is known for his bullishness on orbital data centers.

In its filings, Tesla did not publicly disclose the factory’s annual output, though the company has said it plans to build 100 gigawatts of manufacturing capacity in the U.S. by 2028.

Why it matters

A factory bet on solar panels that could cost up to $10.1 billion, arriving alongside Tesla’s broader push toward plans to build 100 gigawatts of U.S. manufacturing capacity, signals the company is betting heavily on energy hardware — not just electric vehicles — as a growth line, even as it leaves open whether that hardware ends up on rooftops or in orbit.