Tesla (TSLA) Eyes $2.9B Chinese Solar Equipment Deal to Power U.S. Factories

TLDR

• Tesla is in talks to buy ~$2.9 billion worth of solar manufacturing equipment from Chinese suppliers
• Suzhou Maxwell Technologies is the leading candidate and has already applied for Chinese export approval
• Other potential suppliers include Shenzhen S.C New Energy and Laplace Renewable Energy Technology
• Equipment is expected to be delivered before autumn, with shipments heading to Texas
• Elon Musk’s goal is to add 100 GW of U.S. solar manufacturing capacity by end of 2028

Tesla (TSLA) is in talks to purchase roughly $2.9 billion worth of solar manufacturing equipment from Chinese suppliers, according to Reuters sources. The deal would support Elon Musk’s stated goal of building 100 gigawatts of solar manufacturing capacity on U.S. soil before the end of 2028.

Musk said in January that solar power could meet all of America’s electricity needs — including growing demand from AI data centres. Tesla’s own job postings spell out the target: 100 GW of “solar manufacturing from raw materials on American soil” within a few years.

Tesla, Inc., TSLA

The equipment under discussion includes screen-printing production lines used to make solar cells. Some of it will need export approval from China’s commerce ministry before it can be shipped.

Suzhou Maxwell Technologies is the front-runner for the deal. The company is the world’s largest producer of screen-printing equipment for solar cells and has already begun seeking Chinese regulatory clearance.

Two other Chinese firms are also in the frame: Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology. All three saw their stock jump more than 7% after the Reuters report broke.

Sources say the Chinese companies have been told to deliver the equipment by this autumn. Two of the sources said the machinery would be shipped to Texas.

Musk plans to use the solar capacity mainly for Tesla’s own operations, though some will also power SpaceX satellites, according to people familiar with the matter.

Chinese Equipment, American Factory

The deal highlights a tension at the heart of U.S. manufacturing policy. The country wants to reduce its dependence on China — but rebuilding domestic solar production still requires buying machines from Chinese suppliers.

Solar manufacturing equipment was carved out from tariffs by the Biden administration in 2024, after U.S. solar makers argued there was simply no domestic alternative. The Trump administration has kept that exemption in place.

Musk has been critical of tariff barriers, arguing they make solar economics “artificially high” at a time when power demand is surging. U.S. power consumption hit a record high in 2025 and is projected to keep rising through 2027, per the Energy Information Administration.

Tesla still relies on around 400 China-based suppliers to keep costs down, with 60 of them supplying Tesla globally, including for its U.S. plants. Last year, Cybertruck and Semi production ran into trouble after component shipments from China were paused following a tariff hike.

A Massive Target — With a Caveat

Setting up 100 GW of solar manufacturing in two to three years would be an extraordinary undertaking. For context, the U.S. had a total electricity generating capacity of around 1,300 GW as of 2024, with solar accounting for just 135 GW of that.

Musk is no stranger to ambitious timelines that slip. But the scale of the potential equipment order — 20 billion yuan worth — suggests this is more than just talk.

Tesla, Suzhou Maxwell, Shenzhen S.C New Energy, Laplace Renewable Energy, and China’s commerce ministry all declined to comment when contacted by Reuters.

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