Tesla seeks $10.1bn Texas solar facility amid tax incentive push
The electric vehicle maker has filed documents to build a manufacturing plant southwest of Houston, contingent on state tax relief to offset projected liabilities.
Tesla has submitted filings to the state of Texas outlining plans for Project Crystal Sun, a new solar panel manufacturing facility located approximately 45 minutes southwest of Houston. The project, which the company estimates could cost up to $10.1 billion, is designed to create around 9,700 full-time jobs.
According to documents reviewed by TechCrunch, Tesla has applied for state tax incentives to mitigate the financial burden of the development. Without such relief, the company’s accountants projected a property tax liability of approximately $1.1 billion over a 37-year period. The firm noted it is currently exploring other potential sites across multiple US states while pursuing the Texas location.
The timeline for the facility targets breaking ground this year, with construction completion scheduled for 2028. Tesla stated that the first solar panels are expected to roll off the production line in 2029. The company has not yet disclosed the specific annual output of the factory in its filings.
This facility forms part of Tesla’s broader strategy to establish 100 gigawatts of manufacturing capacity within the United States by 2028. While the intended application of the solar panels remains unspecified, with no confirmation on whether they are destined for terrestrial installations or satellite infrastructure, the move aligns with the company’s expanding renewable energy footprint.
Tesla CEO Elon Musk, who also leads SpaceX, has previously expressed strong interest in orbital data centres. However, the specific use case for the output of Project Crystal Sun has not been publicly confirmed in the current regulatory submissions.
