AUSTIN, Texas — Electric vehicle and energy firm Tesla has filed a proposal for a massive $10.1 billion solar manufacturing facility in Fort Bend County, Texas, a move that would significantly bolster domestic energy production and challenge current U.S. panel manufacturing capacity.

Project Crystal Sun

The project, code-named “Project Crystal Sun,” was revealed in a Texas tax-incentive application. The facility is projected to begin commercial operations in early 2029 and would employ over 9,700 American workers in full-time positions. The application does not specify the factory's total output, but it aligns with public statements from CEO Elon Musk regarding a substantial national build-out.

Musk stated in January that Tesla and SpaceX are both independently targeting the manufacturing of 100 gigawatts (GW) of solar power capacity annually within the United States. This combined target of 200 GW would dwarf the nation's current operational module manufacturing capacity of 74.1 GW, which the Solar Energy Industries Association reports is already sufficient to supply 170% of projected U.S. demand for 2026.

“The SpaceX and Tesla team, both separately, are working to build to 100 GW a year of solar power in the US—of manufactured solar power,” Musk said. “That'll probably take us three years or something. These are pretty big numbers, and I'd encourage others to do the same.”

The filing indicates Tesla intends to manufacture photovoltaic solar cells and assembled modules, with listed equipment pointing to production further up the supply chain. This vertical integration could reduce dependence on solar components imported from China, a primary strategic goal for U.S. energy resilience.

Tesla noted the Texas location is not yet finalized and that the project's viability depends on receiving state and local economic incentives. Without them, the company stated the Texas site becomes less competitive versus another unnamed U.S. location under consideration. The move comes as energy demand from American AI and data center infrastructure surges, with projects like a new Louisiana solar farm specifically built to power a Meta Platforms data center.

If approved, construction is expected to begin in 2025 and conclude in 2028, securing the United States' position as a primary manufacturer of next-generation energy technology.