SATURDAY, OCTOBER 10, 2026|No. 18237
Business · Energy

Tesla Proposes $10 Billion Solar Factory in Texas, Seeking Tax Incentives

Tesla has filed documents with the state of Texas proposing a massive $10.1 billion solar panel factory, named Project Crystal Sun, which could create nearly 10,000 jobs and is seeking significant tax incentives.

An artist's rendering of a large-scale solar panel manufacturing facility.
An artist's rendering of a large-scale solar panel manufacturing facility.
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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.

PAN's pipeline reviewed approximately 3 open sources for this article. No human editor reviewed this article before publication.

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