According to Bloomberg, Tesla is not waiting to see if its CEO Elon Musk’s ambitious goal of 100 gigawatts of solar capacity is feasible but has already taken action. Informed sources revealed that the company is evaluating multiple locations in the United States to initiate solar cell manufacturing operations, turning a goal that seemed unrealistic just weeks ago into an aggressive industrial push.
Sources indicated that part of the plan involves expanding the capacity of its factory in Buffalo, New York, which is expected to reach 10 gigawatts—equivalent to the power output of 10 nuclear power plants. One source added that in the long term, Tesla may also consider building a second factory in New York State.
Sources also disclosed that Arizona and Idaho are under consideration as potential locations. Tesla Vice President Bonne Eggleston is leading the project and has recently posted job listings on LinkedIn, seeking talent for solar manufacturing roles within the United States.
While previous efforts by Tesla to develop its solar business failed to meet Musk’s targets, the immense electricity demand from the artificial intelligence sector is prompting Musk to prioritize solar energy once again. It is reported that solar cells are thin wafers used to manufacture solar panels.
In a recent “Cheeky Pint” podcast episode recorded with John Collison, co-founder of payment platform Stripe, Musk criticized the “staggeringly high” tariffs currently imposed by the United States on imported solar products.
Released on February 5, the podcast featured Musk stating, “We need to produce our own solar products. Both SpaceX and Tesla are moving toward the goal of producing 100 gigawatts of solar cells annually.”
Regarding the report, neither Musk nor Tesla responded to requests for comment.
Jeremy Chase, Director of Tourism and Marketing at the Idaho Department of Commerce, stated in an email, “We can neither confirm nor deny the companies we are currently working with and will not discuss ongoing or potential projects.”
The Empire State Development Agency of New York and the Arizona Governor’s Office did not respond to requests for comment. A spokesperson for the New York Governor’s Office noted that no discussions with Tesla have taken place on this matter.
Last month, Musk stated that Tesla aims to achieve an annual production capacity of 100 gigawatts of solar cells to power data centers on Earth and in space. Achieving this goal would easily make Tesla the largest solar manufacturer in the United States. First Solar Inc., currently the leader in the U.S. solar manufacturing sector, expects to increase its domestic capacity to 14 gigawatts this year. During early trading that day, First Solar’s stock price fell by as much as 7.1%.
Musk remarked during Tesla’s earnings call last month, “The opportunities in solar energy are severely underestimated.”
In 2016, Tesla acquired the struggling SolarCity for approximately $2 billion. The company was chaired by Musk and operated by his cousin. In his “Master Plan Part Deux,” Musk stated that “creating a stunning solar roof” was as important as expanding Tesla’s vehicle lineup.
However, Tesla’s “solar roof” product has yet to break out of its niche market, remaining limited to some homeowners.
Current State of U.S. Solar Manufacturing
Musk’s latest blueprint focuses on the solar cell market, which is currently dominated by China.
According to BloombergNEF data, the United States currently produces about 3 gigawatts of solar cells annually, with its domestic solar manufacturing industry primarily focused on solar panel production.
Despite U.S. tariffs on solar imports from China, the development of the domestic solar manufacturing industry remains challenging. During Donald Trump’s presidency, the reduction of related incentives further suppressed solar market demand.
Recent news reports indicate that teams from Musk’s SpaceX and Tesla recently visited several Chinese solar companies to negotiate the procurement of solar manufacturing equipment.
