Tesla Plans To Make a 100 GW Solar Cell Foundry In The US

Elon Musk-led Tesla Inc. has announced a plan to foray into the business of solar cell manufacturing. Chairman of the firm Elon Musk revealed their new cleantech initiative plan with its investors in its earning call. As per the plan of the US-based electric vehicle and clean energy major, Tesla, Inc. has indicated plans to become a large-scale manufacturer of solar cells in the United States, with a long-term ambition of 100 GW per year of integrated solar cell production.

This is a part of its broader push to build resilient domestic energy and manufacturing supply chains. Speaking during the company’s latest investor conference call, CEO Elon Musk said Tesla is working towardsend-to-end solar manufacturing, spanning raw materials through to finished panels. Musk said that the move underscored  the company’s belief that solar generation paired with batteries represents the fastest and most scalable way to strengthen grid capacity.'

"The solar opportunity is underestimated,” Musk said, adding that Tesla sees solar and storage—on Earth and eventually in space—as core pillars of future energy abundance. Tesla is no stranger to the solar space, having acquired Solar City, then the largest US rooftop installer, in 2016 for a reported $2.6 billion. While Solar City was subsequerntly merged with Tesla Energy, it's performance has been middling, losing its leading ranking, even as it faces pressure due to its higher prices for solar installs. 

Solar Cell Foundry Still Early-Stage

The company however, did not give any timelines or capital outlay for the planned entry into solar manufavturing. Vaibhav Taneja, the Chief Financial Officer (CFO)clarified thatsolar cell manufacturing investments are not yet included in Tesla’s projected over $20 billion CapEx for 2026, suggesting the solar foundry remains in theplanning and evaluation phase.

“These are infrastructure plays,” Taneja said, referring to both solar cell manufacturing and semiconductor fabrication, indicating Tesla is assessing funding structures beyond internal cash for these long-gestation assets.

Industry watchers note that a US-based solar cell foundry would align with supply-chain localization trends, trade protection measures, and rising demand for domestically manufactured clean energy hardware.

Massive Battery and Energy Expansion Continues

Parallel to its solar ambitions, Tesla reaffirmed heavy investments across the battery value chain, including cell manufacturing, lithium refining, and large-scale energy storage.

The company reported $12.8 billion in energy segment revenue in 2025, up 26.6% year-on-year, driven by strong global demand for MegaPack and Powerwall deployments. Tesla expects further growth in 2026 with the rollout of MegaPack 3 and Mega Block, despite margin pressure from tariffs and intensifying competition.

Musk emphasized that batteries remain a strategic bottleneck globally, reinforcing Tesla’s view that vertical integration is essential for long-term scale.

EV Strategy Shifts Toward Autonomy

On the automotive side, Tesla confirmed it will wind down Model S and Model X production next quarter, converting the Fremont facility space to manufacture Optimus humanoid robots, with a long-term capacity target of one million units per year.

Meanwhile, Tesla expects autonomy to fundamentally reshape vehicle demand. Musk said the company anticipates fully autonomous vehicles operating across a significant portion of the US by year-end, subject to regulatory approvals, and expects CyberCab robotaxis to eventually exceed all other vehicle models in production volume.