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Tesla to build $10B solar panel factory in Texas
The facility will be located near Houston

Tesla to build $10B solar panel factory in Texas

Aug 13, 2026
10:09 am

What's the story

Tesla is planning to set up a massive solar panel factory in Texas. The facility, called Project Crystal Sun, will be located 45 minutes southwest of Houston. According to documents filed with the state of Texas, the project could cost as much as $10.1 billion. Tesla has applied for tax incentives to help offset some of these costs and is also looking at other potential locations across multiple US states.

Job creation

Factory to create 9,700 full-time jobs

The proposed solar panel factory is expected to create around 9,700 full-time jobs.

Without any tax incentives, Tesla's accountants have estimated that the property tax liability for this project would be approximately $1.1 billion over a period of 37 years.

The company plans to start construction this year and finish it by 2028, with the first solar panels expected to roll off the production line in 2029.

Production details

Musk's vision for orbital data centers

While Tesla has not publicly revealed the annual output of the new factory, it has said that it plans to add 100 gigawatts (GW) of manufacturing capacity in the US by 2028.

The company's CEO, Elon Musk, who also heads SpaceX, is known for his enthusiasm about orbital data centers.

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