Tesla wants to build a $10B solar factory in Texas

In Brief

Posted:

9:18 AM PDT · August 12, 2026

Tesla intends to build a massive solar panel factory 45 minutes southwest of Houston, according to documents filed with the state of Texas.

The new factory, called Project Crystal Sun, could cost as much as $10.1 billion. Tesla has applied for tax incentives to partially offset the cost, saying that it is exploring other sites “across multiple U.S. states.” The factory would create about 9,700 full-time jobs, Tesla said.

Without incentives, Tesla’s accountants estimated that the property tax liability for the project would be about $1.1 billion over 37 years.

The project aims to break ground this year and be completed by 2028, and Tesla said the first solar panels would roll off the line in 2029. The company hasn’t indicated whether the panels would be destined for terrestrial installations or satellites. However, Tesla CEO Elon Musk, who also runs SpaceX, is famously bullish on orbital data centers.

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

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Reporting from TechCrunch contributed to this story.