Tesla in Talks With Chinese Firms to Purchase USD 2.9 Billion in Solar Manufacturing Equipment: Report

Austin, March 20: Tesla is reportedly in advanced negotiations to acquire solar manufacturing equipment worth approximately USD 2.9 billion from several Chinese suppliers. According to sources familiar with the matter, the move is part of Chief Executive Officer Elon Musk’s ambitious strategy to establish 100 gigawatts of solar manufacturing capacity within the United States by the end of 2028.

The potential order focuses on securing specialised machinery, including screen-printing production lines, necessary for the domestic production of solar cells and panels. Key candidates for the contract include Suzhou Maxwell Technologies, Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology. Following the report, shares in these companies rose by more than 7 per cent on Asian markets. Terafab Project: Elon Musk Confirms To Launch Tesla’s Major Initiative in 7 Days To Boost Domestic AI Chip Production.

Tesla Plans Major Solar Manufacturing Expansion in the US

Elon Musk has previously stated that solar power has the potential to meet the entire electricity demand of the United States, particularly as energy consumption rises due to the proliferation of AI data centres. Tesla’s official job postings have recently highlighted a goal to deploy “solar manufacturing from raw materials on American soil” to address these growing needs.

The equipment is expected to be shipped to Texas, where Tesla is centralising much of its industrial expansion. While the primary purpose of the 100 GW capacity is to power Tesla’s own operations, sources indicate that a portion of the energy generated will also be utilised to support SpaceX satellite infrastructure.

China Export Approvals Could Delay Tesla Deal

Despite the scale of the investment, the deal faces significant regulatory oversight. Suzhou Maxwell Technologies, the world’s largest producer of solar screen-printing equipment, is currently seeking export approval from China’s commerce ministry. It remains unclear how long the approval process will take, though suppliers have reportedly been instructed to prepare for deliveries before autumn 2026.

This transaction underscores a complex reality for US industrial policy. While the federal government aims to reduce reliance on Chinese finished goods, American manufacturers remain dependent on Chinese-made machinery to build domestic factories. Currently, solar manufacturing equipment remains exempt from certain US tariffs to allow domestic firms to establish local production lines.

Tesla Solar Push Highlights Energy Policy Divide

Tesla’s aggressive push into solar energy marks a notable contrast with the broader energy policies of the current administration, which has prioritised fossil fuel production and reduced subsidies for renewable projects. Musk, who briefly led the Department of Government Efficiency earlier this year, has often criticised tariff barriers for making US solar deployment “artificially high”. Tesla Car Launch Date, Price in India: Elon Musk May Launch Tesla Cars by April 2025, Prices Could Be Below INR 22 Lakh.

The United States is currently facing a critical power shortage, with consumption hitting record highs in 2025. As of 2024, solar accounted for only 10 per cent of the country’s total generating capacity. Achieving 100 GW of new manufacturing in a two-year timeframe would represent a massive acceleration of the current domestic supply chain, which Tesla hopes to lead through its continued partnership with over 400 China-based suppliers.

(The above story first appeared on LatestLY on Mar 20, 2026 09:46 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).