Tesla Launches Domestic Solar Cell Manufacturing Plan in the U.S., Aims to Achieve Elon Musk's "100 GW per Year" Goal by 2028

2026-02-12 | Calvin

February 7, 2023 – According to a report from Bloomberg yesterday, Tesla is evaluating plans to set up solar cell manufacturing operations in multiple locations across the U.S. to advance Elon Musk's goal of producing "100 gigawatts of solar cells per year."

Several insiders revealed that Tesla is currently considering locations in New York, Arizona, and Idaho. The company may increase capacity by expanding its Buffalo, New York factory and possibly building a second factory in the future.

At the same time, Tesla has also started related recruitment and disclosed the timeline for the plan. The goal is to complete the deployment of 100 gigawatts of solar manufacturing in the U.S., from raw materials to finished products, by the end of 2028.

Insiders noted that part of Tesla's plan includes expanding the capacity of its Buffalo, New York factory, which could eventually reach 10 gigawatts. This capacity is equivalent to the power generation capacity of 10 nuclear power plants. In the long term, Tesla may also build a second factory in New York State. Besides New York, Arizona and Idaho are also on the shortlist. The project is being led by Tesla Vice President Bonne Eggleston.

In a recent appearance on the "Cheeky Pint" podcast, Musk discussed the plan, stating that the current tariffs on imported solar products in the U.S. are "massive." He added, "We will produce solar energy. Both SpaceX and Tesla are working towards the goal of producing 100 gigawatts of solar cells per year."

Additionally, last month, Musk mentioned that Tesla plans to produce 100 gigawatts of solar cells annually to power data centers on Earth and in space.

Reuters also reported that Tesla executives are actively recruiting on LinkedIn to support this solar manufacturing initiative. Tesla's Senior Manager of Solar Products Engineering, Seth Winger, posted: "This is a bold and ambitious project. We need bold and ambitious engineers and scientists to help us scale to mass production."

On the government and local levels, many parties are remaining cautious about the progress. Jeremy Chase, Director of the Idaho Department of Commerce and Tourism, stated in an email, "We cannot confirm nor deny the companies we are currently working with, nor will we discuss any open or potential projects." Empire State Development, New York's economic development agency, and the Arizona Governor's office did not respond to requests for comment. A spokesperson for the New York Governor's office said that no discussions with Tesla have taken place on this matter. A representative from Empire State Development, Pamm Lent, also stated, "We have not yet engaged with Tesla."

The report noted that if Musk's 100 gigawatt goal is achieved, Tesla would become the largest solar manufacturer in the U.S. Currently, the leading U.S. solar manufacturer, First Solar, is expected to increase domestic production capacity to 14 gigawatts this year. Following the news, First Solar's stock price dropped 7.1% during early trading.

In terms of industry status, Bloomberg data shows that the U.S. currently produces about 3 gigawatts of solar cells annually, with most domestic manufacturing focused on solar modules (panels). Reuters, citing the Solar Energy Industries Association (SEIA), reported that the U.S. currently has around 65 gigawatts of solar module capacity, but only about 3.2 gigawatts of solar cell production capacity. Solar cells are the key component that converts sunlight into electricity. They are significantly more complex and expensive to manufacture than modules, and the market is currently dominated by China.

This latest plan by Tesla contrasts with its previous experiences in the solar business. Tesla acquired SolarCity in 2016 for around $2 billion. At the time, SolarCity was struggling, and Musk, who was serving as chairman, had a cousin running the company.

In his "Master Plan Part Deux," Musk mentioned that "creating stunning solar roofs" was part of Tesla’s mission, alongside expanding the vehicle product line. However, Tesla's "Solar Roof" product has never been able to break out of the niche market.

Reuters also mentioned that Tesla's Buffalo factory was initially obtained through the acquisition of SolarCity. Tesla had previously announced plans to increase the solar capacity at the factory to 1 gigawatt. However, its manufacturing partner, Panasonic, exited the project in 2020. Since then, Tesla has been producing other products, such as Supercharger stations, at the factory. Last week, Tesla unveiled a new solar panel product at the Buffalo facility.

Reuters also cited local media reports stating that Musk's team, including representatives from SpaceX and Tesla, visited multiple Chinese solar companies to learn more about manufacturing equipment.