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Tesla Plans $10.1 Billion Solar Manufacturing Factory Near Houston

ByJolyen

Aug 13, 2026

Tesla Plans $10.1 Billion Solar Manufacturing Factory Near Houston

Tesla is considering a solar manufacturing factory in Fort Bend County, Texas, with planned investment of about $10.1 billion and nearly 9,700 permanent jobs. The proposed facility, known as Project Crystal Sun, would manufacture photovoltaic solar cells and potentially assembled solar modules southwest of Houston.

Tesla disclosed the project in a July 22 application under Texas’ Jobs, Energy, Technology and Innovation Act. The company is seeking a property tax incentive from Lamar Consolidated Independent School District as it evaluates whether to proceed with the Texas location.

The filing estimates total investment at $10.116 billion between 2026 and 2028. Construction is expected to begin in 2026, finish in 2028, and support commercial operations beginning in the first quarter of 2029.

Factory Could Create More Than 9,700 Jobs

Tesla estimates Project Crystal Sun would create 9,712 permanent full-time positions with about $1.3 billion in annual payroll once operating at full scale. Construction could also support about 1,147 jobs at its peak.

The company estimates the project would generate about $1.1 billion in property tax liabilities across all taxing jurisdictions over the 38-year period analyzed in its application. Tesla argues that incentives are necessary because another unnamed US location under consideration currently has a cost advantage.

The planned equipment includes wafer and ingot manufacturing systems, coating equipment, metallization and printing lines, cell-testing systems, automation equipment, cleanrooms, and supporting utility infrastructure. Tesla said the finished products could be used in utility-scale, commercial, and distributed solar installations.

Tesla Targets 100 GW of US Solar Manufacturing

The application does not disclose Project Crystal Sun’s planned annual production capacity. Tesla CEO Elon Musk has previously said Tesla and SpaceX are separately working toward producing 100 gigawatts of solar manufacturing capacity annually in the US within roughly three years.

Tesla job listings also state that employees joining its solar manufacturing operation would help deploy 100 GW of manufacturing capacity from raw materials on US soil before the end of 2028.

Reuters reported in February that Tesla was increasing hiring to support the target as Musk expanded the company’s solar manufacturing plans. The company has not said whether panels made at Project Crystal Sun would be intended only for terrestrial projects or could also support SpaceX-related applications.

Tesla currently produces solar products alongside electric vehicles and battery storage systems. Its official company overview says its manufacturing operations are intended to increase production of electric vehicles, energy storage, and solar energy products.


Featured image credits: Magnific.com

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Jolyen

As a news editor, I bring stories to life through clear, impactful, and authentic writing. I believe every brand has something worth sharing. My job is to make sure it’s heard. With an eye for detail and a heart for storytelling, I shape messages that truly connect.

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