Tesla inches closer to achieve 100 GW of US solar manufacturing capacity

Tesla has reportedly begun a solar panel manufacturing operation at one of its facilities in the United States. The operations have started at its facility in Brookshire, Texas, near Houston, according to a report.

By 2028, the company reportedly plans to build 100 GW per year of U.S. solar manufacturing capacity, as per the report.

The new factory will be co-located with its Megapack Megafactory at the Empire West Business Park.

Combining solar manufacturing with large-scale battery production

By combining solar manufacturing with large-scale battery production, Tesla appears to be creating a fully integrated energy ecosystem capable of generating and storing electricity on a massive scale.

Reports surrounding the project suggest Tesla is targeting an annual solar manufacturing capacity of up to 100 gigawatts in the coming years. Achieving that scale would place the company among the world’s largest solar equipment manufacturers and significantly strengthen U.S.-based solar production.

Cost-effective solutions to meet energy needs

The timing of this move is important. Electricity demand in the United States is rising rapidly due to the growth of electric vehicles, artificial intelligence data centers, industrial electrification, and expanding digital infrastructure. Renewable energy — especially solar power paired with battery storage — is increasingly being viewed as one of the fastest and most cost-effective solutions for meeting future energy needs.

Tesla’s solar manufacturing story has been a decade-long saga of broken promises and modest restarts. When Tesla acquired SolarCity in 2016, it inherited a factory deal with New York state worth nearly $1 billion in public subsidies. The state built Tesla a massive facility in Buffalo in exchange for commitments to create 1,500 factory jobs and invest $5 billion over 10 years in New York, reported Electrek.

In contrast, Tesla’s energy storage products, particularly Megapack systems for utilities and Powerwall batteries for homes, experienced strong market demand worldwide. As a result, the company’s energy division gradually became a more important part of Tesla’s long-term strategy.

The new Texas project suggests Tesla is once again investing heavily in solar manufacturing and aiming to become a dominant player in the renewable energy market.

The expansion also highlights a broader industry trend toward localized manufacturing. Global supply chain disruptions and geopolitical tensions have pushed many companies to increase production within the United States.

At the same time, scaling production to extremely high levels will not be easy. Developing large manufacturing facilities, securing equipment, and maintaining supply chains require substantial investment and operational efficiency. Industry experts believe Tesla’s targets are highly ambitious and will depend on execution speed and market conditions.