Tesla has officially commenced construction on the Crystal Sun solar manufacturing facility located near Houston, Texas. The project represents a capital investment of $10 billion. The site is currently undergoing land clearing and leveling operations, with construction expected to conclude in 2028.

The facility is designed to manage the entire production cycle, including silicon ingots, wafers, coating, metallization, and final cell testing. Commercial operations are scheduled to begin in the first quarter of 2029. The company anticipates creating 9,712 full-time positions at the new plant.

Economic projections suggest the project could contribute $107 billion to the Texas GDP and generate approximately $6.4 billion in state and local tax revenue. This initiative follows the development of the Terafab AI chip project in Austin, which now involves Intel as a partner.

Elon Musk linked the expansion into solar manufacturing to the increasing energy requirements driven by AI and electrification. The company has previously stated an ambition to reach an annual output of 100 gigawatts of solar cells within the United States.