Elon Musk is gearing up to spend billions on solar panels. Tesla is looking to buy equipment worth $2.9 billion for manufacturing solar panels and cells from Chinese suppliers including Suzhou Maxwell Technologies, two people familiar with the matter said, as CEO Elon Musk aims to add 100 gigawatts of solar capacity in the United States.
The equipment includes screen-printing production lines and other machinery essential for large-scale solar panel and cell manufacturing. The equipment under discussion includes screen-printing production lines and other machinery used to build panels and cells efficiently.
Some of this equipment requires export approval from Chinese regulators, and deliveries are expected before autumn 2026. Tesla plans to use the equipment at its U.S. facilities, particularly in Texas, where it is expanding its solar manufacturing operations.
Even as Tesla seeks to increase domestic production, it continues to rely on advanced Chinese technology. U.S. tariffs on solar panels and cells remain in effect, but solar manufacturing equipment was excluded from these tariffs, allowing Tesla to purchase the machinery needed from Chinese suppliers.
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The potential deal could also benefit the Chinese suppliers, who have faced oversupply in domestic markets. Shares of these companies rose following reports of the talks. Exact contract terms, equipment breakdowns, and delivery schedules have not been publicly disclosed. Tesla, the suppliers, and government agencies have not commented officially on the discussions.
As per Reuters, Musk said in January that solar power could meet all of the electricity needs of the United States – including the ever-increasing demand from a growing number of data centres. Job postings on the Tesla website said it aims to deploy 100 GW of “solar manufacturing from raw materials on American soil before the end of 2028.”
Tesla’s aggressive investment in solar manufacturing reflects the broader transformation underway in the global energy sector. Expanding solar capacity on a massive scale underscores the increasing recognition that renewable energy is not just an environmental priority but also a strategic economic and technological driver.
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By scaling production, companies like Tesla are helping to normalize solar power as a mainstream energy source capable of supplying significant portions of national electricity demand.
The move also illustrates the complex interconnection between global supply chains, domestic manufacturing, and technological innovation. While domestic production is critical for securing energy independence and creating jobs, access to specialized international technology remains a key enabler of rapid expansion. This highlights how modern energy transitions often rely on cross-border collaboration, even as nations seek to strengthen local industrial capacity.
Tesla’s plans further emphasize the potential for clean energy to meet growing energy demands in sectors such as commercial infrastructure, data centers, and industrial facilities. Large-scale deployment of solar technologies could reduce reliance on fossil fuels, mitigate environmental impacts, and contribute to long-term sustainability goals, though the precise magnitude of these benefits is uncertain.
This development reflects the broader trend of private companies playing an increasingly central role in shaping national energy strategies.