Tesla will build a giant solar panel factory in Texas that will be used not only on Earth.

Tesla launches new solar manufacturing in Texas

In line with Elon Musk’s ambitions to launch data centers (DCs) into space and support sustainable AI development on Earth, Tesla announced the construction of a large solar panel factory.

Location and logistics
- Geography: a site in Houston, Texas.
- Neighbors: nearby is the Tesla Megapack plant where battery packs for storing energy from solar installations are assembled. This provides close integration between panel production and storage systems.

History and motivation
Year Event Comment 2016 Tesla acquired SolarCity, which was already developing panels in New York. The acquisition expanded its portfolio of energy solutions. 2020 Panasonic stopped producing panels for Tesla. As a result, the New York plant remained unused until the end of last year. 2023 Assessment: the plant can produce panels sufficient for 300 MW of power—only a small fraction of Tesla’s business scale. This became a catalyst for opening a new large production facility in Texas.

Plans and investments
- Production volume: Musk said that Tesla and SpaceX could annually produce panels providing 100 GW of capacity across the United States.
- Suppliers: In March, the company began negotiations with Chinese equipment suppliers worth $2.9 million to supply the new plant with necessary components.
- Vertical integration: The new site will not just assemble finished modules but will handle the full production cycle—from crystal fabrication to final panel assembly.
- Capital costs: Construction is expected to exceed $250 million.
- Transportation: A port in Houston provides fast and economical sea access for materials and equipment.

Conclusion
Tesla’s new Texas plant will become a key element of the company’s strategy to create autonomous energy systems that support both terrestrial and space infrastructure. With close ties to the Megapack plant and planned vertical integration, panel production will be more efficient and scalable than ever before.