After years of setbacks and modest production, Tesla is making a major move to scale solar panel manufacturing in the U.S. by building a new large-scale factory near Houston. This facility will aim toward Elon Musk’s ambitious goal of 100 GW annual solar capacity, marking a significant expansion from Tesla’s current output.
- Tesla to build a 100 GW solar manufacturing complex in Brookshire, Texas.
- Facility to be co-located with Tesla's Megapack Megafactory.
- Up to $2.9 billion in new equipment and $250 million in capital expenditures planned.
What happened
Tesla announced it is constructing a massive new solar panel manufacturing facility at its Brookshire site near Houston, Texas. This factory will operate alongside the Megapack Megafactory already under development at the same location. Electrek independently confirmed the Houston site as the base for Tesla’s solar capacity expansion.
The company plans a full vertical integration of solar manufacturing there, covering all production stages from ingot growth and wafer slicing to photovoltaic cell fabrication and panel assembly. The factory will utilize significant capital investments, including over $250 million across multiple buildings and a $2.9 billion equipment purchase from Chinese suppliers.
Why it matters
This new factory represents Tesla’s most concrete step toward achieving the 100 GW annual solar manufacturing target announced by Elon Musk in early 2026—a scale vastly exceeding Tesla’s previous capacity, which was limited to around 300 MW per year in Buffalo, New York. The Buffalo factory had struggled for years after Panasonic exited solar panel production in 2020.
Locating the plant near Houston offers strategic advantages including access to a major port for equipment imports, a deep industrial workforce, and proximity to Tesla’s energy storage operations. Combining solar and Megapack production on one campus streamlines Tesla’s supply chain and supports its integrated clean energy product ecosystem.
What to watch next
Observers should monitor the progress of Tesla’s equipment deliveries and factory construction phases in Brookshire as indications of the timeline for scaling solar production capacity. Achieving 100 GW annually will require rapid ramp-up and overcoming significant manufacturing challenges given the 300-fold increase over current output.