Tesla is in advanced talks to purchase approximately $2.9 billion worth of solar manufacturing equipment from Chinese suppliers, according to sources familiar with the matter. The move comes as CEO Elon Musk pushes toward an ambitious goal of adding 100 gigawatts of solar capacity on American soil by 2028.
Among the leading candidates for the deal is Suzhou Maxwell Technologies, the world’s largest producer of screen-printing equipment used in solar cell manufacturing. The company has been seeking export approval from China’s commerce ministry for the transaction, three sources said. Other potential suppliers include Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology.
The equipment package, which includes screen-printing production lines, would require export approval from Chinese regulators for at least some components. Sources indicated the Chinese companies have been asked to deliver before autumn, with shipments likely headed to Texas, where Musk plans to build out the solar capacity primarily for Tesla’s own use, though some will also power SpaceX satellites.
Musk outlined his vision in January, suggesting solar power could meet all U.S. electricity needs, including the surging demand from data centers. Tesla job postings have since specified a goal of deploying 100 GW of “solar manufacturing from raw materials on American soil before the end of 2028.”
The potential order underscores a persistent reality of the U.S. supply chain: even as America pushes to reduce dependence on China, reviving domestic manufacturing still requires significant engagement with the world’s second-largest economy.
U.S. Gigplant with Chinese Equipment
For Chinese solar equipment makers, a Tesla deal would provide a substantial boost amid weak domestic demand caused by overcapacity. The U.S. solar market, meanwhile, remains heavily protected by tariffs aimed at curbing imports of cheaper panels and cells from China and Southeast Asia.
However, solar manufacturing equipment itself was excluded from those tariffs in 2024 at the urging of U.S. panel makers, who argued they had no alternative sources for the machinery needed to establish domestic factories. The Trump administration has extended that exemption as part of broader efforts to build out American solar supply chains.
Musk has been critical of tariff barriers, arguing they make solar deployment in the United States “artificially expensive” at a time when the country faces critical power shortages driven by AI data centers and manufacturing growth. His position contrasts sharply with the energy policies of President Donald Trump, his former employer, who has prioritized maximizing fossil fuel production and slashed federal subsidies for solar and wind projects.
U.S. power consumption hit consecutive record highs in 2025 and is projected to rise further through 2027, according to the Energy Information Administration. Yet solar remains a small slice of the energy pie. As of 2024, the U.S. had 1,300 GW of total electricity generation capacity, with solar accounting for just 135 GW, or about 10%.
Setting up 100 GW of solar manufacturing capability within a few years would be a staggering feat, and Musk has a well-documented history of setting ambitious timelines that don’t always materialize. Still, the potential order signals serious intent.
Tesla has been pushing to localize more components across different regions but remains dependent on roughly 400 China-based suppliers to control costs. Sixty of those suppliers also serve Tesla’s global operations, including its U.S. electric vehicle plants.
That dependence was highlighted last year when production preparations for Tesla’s Cybertruck and Semi models encountered setbacks after component shipments from China were suspended following significant U.S. tariff hikes on Chinese goods.
Tesla, China’s commerce ministry, and the three equipment suppliers did not respond to requests for comment. Chinese media reported last month that Tesla had visited several solar companies in the country, but the details of advanced talks, the estimated order size, delivery timeline, and regulatory requirements have not been previously reported.
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