Tesla proposes $10.1 billion solar manufacturing plant in Texas

Tesla has filed a tax-incentive application for a proposed $10.1 billion solar cell manufacturing facility in Fort Bend County, Texas. Operating under the codename ‘Project Crystal Sun,’ the project represents the largest U.S. manufacturing investment ever documented by the company.

The proposed 3,050-acre site near Richmond would feature a vertically integrated production process, covering everything from ingot and wafer manufacturing to finished cells and modules. This level of integration is intended to replicate manufacturing models currently dominated by China, moving beyond simple module assembly to domestic production of core components.

Tesla plans to invest approximately $1.5 billion in real property and $8.6 billion in equipment between 2026 and 2028, with commercial production slated to begin in the first quarter of 2029. The company is seeking a 10-year property tax abatement through the Texas Jobs, Energy, Technology and Innovation (JETI) program, noting that such incentives are necessary to remain economically competitive against alternative locations.

Economic projections suggest the project could create thousands of jobs and contribute significantly to the regional GDP. If realized, the facility would expand Elon Musk’s manufacturing footprint in the Houston area, joining other major regional proposals involving SpaceX and Tesla.