Tesla Proposes $10.1 Billion Solar Cell Manufacturing Facility in Texas – Mercomindia.com

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The proposed facility is expected to begin commercial operations in 2029
August 17, 2026
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Electric vehicle maker Tesla is evaluating the development of a $10.1 billion solar cell manufacturing facility in Fort Bend County, Texas, according to an application filed under the state’s Jobs, Energy, Technology and Innovation (JETI) program.
The proposed facility, referred to as ‘Project Crystal Sun,’ would manufacture solar cells and assemble solar modules. The products would be used in utility-scale, commercial, and distributed solar installations.
Tesla is seeking a 10-year limitation on the appraised value of eligible property from the Lamar Consolidated Independent School District under the JETI program. The proposed project would be located within the school district’s jurisdiction in Fort Bend County.
The company expects construction to begin in 2026 and be completed in 2028. Commercial operations are planned to begin in the first quarter of 2029.
Tesla has proposed a total capital investment of $10.12 billion from 2026 through 2028. The investment comprises approximately $1.52 billion in real property and $8.6 billion in personal property.
The company plans to invest $2.33 billion in 2026, $3.29 billion in 2027, and $4.49 billion in 2028.
The facility would include wafer and ingot manufacturing equipment, coating equipment, metallization and printing lines, cell testing and quality control equipment, automation and material handling systems, chemical storage and delivery systems, utility infrastructure, and environmental and safety systems.
Tesla said it is evaluating potential locations across multiple U.S. states for the solar manufacturing facility.
The project would create 9,712 permanent full-time positions when fully operational, with an estimated annual payroll of approximately $1.3 billion.
Tesla said recent public comments from its leadership have discussed potential U.S. solar cell manufacturing without identifying a specific location. In January this year, Tesla’s Chief Executive Officer Elon Musk said Tesla and SpaceX were separately working toward manufacturing 100 GW of solar power annually in the U.S. within about three years.
The Fort Bend County project remains under evaluation. Tesla’s application states that the company is also considering another U.S. location.
Tesla reported total revenue of $28.24 billion in the second quarter of 2026, a 26% year-over-year increase from $22.5 billion, driven by vehicle deliveries, higher automotive sales, and continued growth in its services business.
Rakesh Ranjan
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