Tesla launches domestic solar cell manufacturing plan in the United States, aiming to achieve 100 GW capacity by 2028

Tech Home, February 7 — According to Bloomberg’s report yesterday, Tesla is evaluating plans to establish solar cell manufacturing facilities in multiple locations across the United States to advance Elon Musk’s goal of an annual production of 100 gigawatts of solar cells.

Several insiders said that the current considered sites include New York, Arizona, and Idaho, and capacity could be increased through expansion of the Buffalo, New York factory and the construction of a second plant.

Meanwhile, Tesla has also initiated related recruitment and disclosed the timetable for the first time. The goal is to complete a 100 GW solar manufacturing deployment in the U.S. from raw materials to finished products by the end of 2028.

Sources said that part of Tesla’s plan involves expanding the capacity of its Buffalo, New York factory, which could reach 10 GW in the future. The report pointed out that this scale is equivalent to the power generation capacity of 10 nuclear power plants. In the long term, Tesla may also build a second factory in New York. Besides New York, Arizona and Idaho are also on the candidate list. The project is led by Tesla Vice President Bonne Eggleston.

Elon Musk previously mentioned this plan on the “Cheeky Pint” podcast, stating that the current tariffs on imported solar products in the U.S. are “very high.” He said, “We will produce solar energy. SpaceX and Tesla are both working toward an annual target of 100 gigawatts of solar cell production.”

Additionally, Musk stated last month that Tesla plans to power Earth and space data centers through the annual production of 100 GW of solar cells.

Reuters also reported that Tesla executives have recently been posting on LinkedIn to expand recruitment to support this solar manufacturing plan. Tesla Solar Products Engineering Senior Manager Seth Winger posted, “This is a bold and ambitious project. We need bold and ambitious engineers and scientists to help us scale up.”

At the government and local levels, multiple parties remain cautious about the progress. Jeremy Chase, head of Tourism and Market Management at the Idaho Department of Commerce, said in an email, “We cannot confirm or deny the companies we are currently working with, nor will we discuss open or potential projects.” The New York State Economic Development Agency, Empire State Development, and the Arizona Governor’s Office did not respond to requests for comment. A spokesperson for the New York State Governor’s Office said they have not yet contacted Tesla about this matter. Pamm Lent, spokesperson for Empire State Development, also stated, “We have not yet engaged with Tesla.”

The report mentioned that once Musk’s 100 GW target is achieved, Tesla will become the largest solar manufacturer in the U.S. Currently, the main player in U.S. solar manufacturing, First Solar, is expected to increase its domestic capacity to 14 GW this year. Following this news, First Solar’s stock price dropped as much as 7.1% in early trading.

From the industry perspective, Bloomberg data shows that the current annual solar cell production in the U.S. is about 3 GW, with most domestic manufacturing focused on solar modules (panels). Reuters cited data from the U.S. Solar Energy Industries Association (SEIA), indicating that the U.S. currently has about 65 GW of solar module capacity, but only about 3.2 GW of solar cell capacity. Solar cells, which convert sunlight into electricity, are a key component with significantly higher manufacturing complexity and costs than modules, and this market is currently dominated by China.

Tesla’s latest plan also contrasts with its previous experience in the solar business. In 2016, Tesla acquired SolarCity for about $2 billion (Note: approximately 13.89 billion RMB at current exchange rates). At that time, SolarCity was struggling, and Musk served as chairman; the company was operated by his relative.

In “Master Plan Part Deux,” Musk stated that “building stunning solar roofs” is part of Tesla’s mission, just like expanding its vehicle lineup. However, Tesla’s “Solar Roof” product has never broken out of the niche market.

Reuters also mentioned that the Buffalo factory was initially acquired through Tesla’s purchase of SolarCity, with plans to increase its solar capacity to 1 GW. However, Panasonic, Tesla’s manufacturing partner, exited the project in 2020, after which Tesla also produced products like superchargers at the factory. Reuters reported that Tesla launched a new solar panel product at the Buffalo plant last week.

Additionally, other local media cited that representatives from SpaceX and Tesla teams have visited several Chinese solar companies to learn about manufacturing equipment.