Tesla is in talks to purchase $2.9 billion worth of solar panel and cell manufacturing equipment from Chinese suppliers, according to a Reuters exclusive report published on March 20, 2026. The deal, which involves at least three Chinese companies and calls for delivery to Texas before autumn, would support CEO Elon Musk’s goal of building 100 gigawatts of solar manufacturing capacity in the United States by the end of 2028.
- Tesla is negotiating a $2.9 billion (20 billion yuan) purchase of solar manufacturing equipment from Chinese suppliers including Suzhou Maxwell Technologies, as reported by Reuters on March 20, 2026.
- The equipment must be delivered to Texas before fall 2026, and portions of the order will require export approval from Chinese regulators.
- Tesla aims to build 100 gigawatts of solar manufacturing capacity on American soil by the end of 2028, primarily to power its own operations and SpaceX satellites.
Details of the $2.9 Billion Solar Equipment Deal
Suzhou Maxwell Technologies, the world’s largest producer of screen-printing equipment for solar cells, is the leading candidate to supply machinery for the project, according to CNBC’s coverage of the Reuters report. Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology are also in discussions with Tesla. The order totals approximately 20 billion yuan and includes screen-printing production lines and other specialized manufacturing systems used in solar cell production.
Two of the Chinese suppliers confirmed that the equipment would be shipped to Texas, where Tesla has been centralizing its industrial operations since relocating its headquarters from California in 2021. The companies were told to complete deliveries before autumn 2026, an aggressive timeline that signals how quickly Musk wants to scale Tesla’s solar ambitions. Chinese media confirmed the contract is “at the gigawatt level,” suggesting the new manufacturing lines could produce solar panels at enormous scale from day one.
Shares in the Chinese supplier companies rose more than 7% on Asian markets after the Reuters report was published. Musk’s team has also previously visited Chinese solar companies that specialize in heterojunction and perovskite cell technologies, pointing to an interest in next-generation solar manufacturing methods rather than conventional silicon-only approaches.
Background on Tesla’s Solar Manufacturing Push
Job postings on Tesla’s website state that the company aims to deploy “solar manufacturing from raw materials on American soil before the end of 2028.” That 100-gigawatt target would represent a massive expansion of domestic solar production, given that solar currently accounts for roughly 10% of total U.S. generating capacity.
Musk’s team has previously visited Chinese solar companies focused on heterojunction and perovskite technologies, according to Chinese media reports. The deal comes at a time when electricity demand from AI data centers is surging across the tech industry, creating new urgency around domestic energy production. Some of the solar capacity is also expected to power SpaceX satellites.
Impact on the Solar Industry and U.S. Manufacturing
The $2.9 billion equipment purchase would position Tesla as one of the largest solar manufacturers in the United States. While U.S. tariffs currently protect the domestic solar panel market from Chinese imports, the Biden administration exempted solar manufacturing equipment from those tariffs in 2024, clearing a path for exactly this type of purchase. That distinction is critical: Tesla is not importing panels, but rather the machines that make them on American soil.
Some portions of the order, including screen-printing production lines, will require export approval from China’s commerce ministry. The approval timeline remains uncertain, and any delays from Chinese regulators could push back Tesla’s aggressive delivery schedule. Analysts have noted that export controls on advanced manufacturing equipment have become an increasingly sensitive area in U.S.-China trade relations.
If completed, the deal would represent one of the largest single investments in U.S. solar manufacturing infrastructure in recent years. For entrepreneurs and startups in the clean energy supply chain, Tesla’s entry at this scale could reshape domestic solar manufacturing and create new demand for installation services, component suppliers, and maintenance contractors across Texas and the broader Sun Belt region.
Frequently Asked Questions
How Much Is Tesla Spending on Solar Manufacturing Equipment?
Tesla is negotiating with Chinese suppliers to purchase approximately $2.9 billion (20 billion yuan) worth of solar panel and cell manufacturing equipment. The machinery is expected to be delivered to Texas before fall 2026.
What Is Tesla’s 100 Gigawatt Solar Goal?
Tesla aims to deploy 100 gigawatts of solar manufacturing capacity from raw materials on American soil by the end of 2028, according to job postings on the company’s website. The solar capacity will primarily serve Tesla’s own operations, with some allocated to power SpaceX satellites.
Which Chinese Companies Are Supplying Tesla’s Solar Equipment?
The leading supplier is Suzhou Maxwell Technologies, the world’s largest producer of screen-printing equipment for solar cells. Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology are also in discussions with Tesla.
