Musk Bets Big on Solar! Tesla's 'Project Crystal Sun' Revealed – Will It Be Built in Texas and Partner with SpaceX?

Tesla is assessing the construction of a large solar cell manufacturing facility in the U.S. state of Texas, with an estimated investment of up to $10.1 billion (approximately NT$320 billion). According to documents submitted by Tesla to Texas state authorities, if this project—codenamed 'Project Crystal Sun'—is ultimately implemented, it is expected to generate more than 9,700 permanent full-time jobs and 1,147 temporary construction-related positions locally, making it one of the most significant manufacturing investments in Texas in recent years.

According to Tesla's filings, the proposed site for 'Project Crystal Sun' is located in Fort Bend County, on the outskirts of Houston. However, Tesla is still evaluating the feasibility of the project and has stated that it is exploring potential sites across multiple U.S. states for establishing solar manufacturing facilities, meaning Texas is not the only option under consideration.

Tesla warned in its submissions that if Texas fails to secure this investment, it could miss out on a multi-billion-dollar opportunity—not only losing the chance to create thousands of full-time jobs but also missing a pivotal moment to advance domestic solar cell manufacturing and establish the U.S. as a hub for solar industry production.

The company is currently evaluating the viability of setting up solar factories in various U.S. states and is submitting proposals to state governments to seek local support for this major investment. If 'Project Crystal Sun' ultimately lands in Texas, Tesla plans to break ground this year, complete construction by 2028, and commence commercial operations in 2029.

In terms of employment, the solar cell factory is expected to become a major source of local jobs. Tesla estimates that once the factory is fully operational, it will create over 9,700 permanent full-time positions. Additionally, around 1,147 temporary workers will be needed during the construction phase.

This means 'Project Crystal Sun' could not only bring manufacturing investment to Fort Bend County but also stimulate construction, engineering, and related supply chain activities during the development phase.

However, the documents released by Tesla do not disclose how many solar cells the factory is expected to produce annually, nor do they specify which production technologies or product specifications will ultimately be adopted.

Beyond investment and employment figures, Tesla's filings also reveal the potential tax revenue this project could generate for local governments. Tesla estimates that without any local tax incentives, it would pay approximately $1.1 billion in local property taxes over the next 37 years.

Given the scale of this investment, whether local governments offer tax incentives could become a crucial factor in Tesla's final decision on the factory location. For Texas, balancing the attraction of major corporate investments with the need to maintain local tax revenues will be a key part of upcoming negotiations.

Currently, Tesla has not disclosed what level of incentives it hopes to receive from Texas, nor has it confirmed that 'Project Crystal Sun' will definitely be located in Fort Bend County.

Another point drawing attention to 'Project Crystal Sun' is that Tesla has not yet publicly clarified which markets the solar cells produced at this factory will serve.

One possible use is for traditional ground-mounted solar power systems, such as large-scale solar farms or other energy infrastructure. However, another noteworthy possibility lies in space applications.

Elon Musk, CEO of Tesla, also leads SpaceX, the aerospace company that has already deployed thousands of satellites into low Earth orbit. These satellites rely on solar panels to harness sunlight and generate power for onboard communications, computing, and other equipment.

As a result, there is market speculation about whether Tesla might eventually integrate its solar manufacturing capabilities with SpaceX's satellite operations. However, Tesla's current filings do not confirm that 'Project Crystal Sun' will supply solar cells to SpaceX or other satellite programs, so it remains unverified whether the factory will be directly linked to satellite manufacturing or space energy needs.

Musk has previously set a goal of establishing 100 gigawatts (GW) of solar production capacity in the United States, signaling Tesla's intent to expand further in the solar manufacturing sector.

According to the U.S. Energy Information Administration (EIA), 100 GW of generating capacity is equivalent to about 8% of the total U.S. grid capacity. Judging by this scale, achieving 100 GW would require more than a single factory—it would necessitate a large-scale manufacturing and supply chain network. Therefore, if 'Project Crystal Sun' is completed, it could become a key component of Tesla's broader strategy to expand domestic solar manufacturing in the U.S.

Currently, Tesla's core business remains focused on electric vehicles, energy storage, and related energy products. However, the company has been steadily expanding its energy operations in recent years, including solar power generation and energy storage systems. If this $10.1 billion factory is ultimately built, it would significantly strengthen Tesla's footprint in U.S. solar manufacturing.

Tesla plans to start construction this year, complete the facility by 2028, and begin commercial operations in 2029. However, since the company is still evaluating multiple states, whether 'Project Crystal Sun' ultimately lands in Texas—and the actual investment size and production capacity—will depend on future developments.