Key Highlights
- Tesla is negotiating a purchase of approximately $2.9 billion in solar production equipment from suppliers in China
- Suzhou Maxwell Technologies leads the supplier list and has submitted applications for Chinese export authorization
- Additional suppliers under consideration include Shenzhen S.C New Energy and Laplace Renewable Energy Technology
- Delivery timeline targets autumn, with Texas expected as the destination for shipments
- Musk’s ambitious plan calls for 100 GW of domestic solar production capability by late 2028
According to Reuters sources, Tesla (TSLA) is currently negotiating the acquisition of approximately $2.9 billion in solar production equipment from suppliers based in China. This significant investment aligns with Elon Musk’s publicly stated ambition to establish 100 gigawatts of solar manufacturing capability within the United States by the conclusion of 2028.
Musk declared in January that solar energy possessed the potential to satisfy America’s complete electricity requirements — a need that continues expanding with AI data center proliferation. Job listings from Tesla outline the ambitious objective: achieving 100 GW of “solar manufacturing from raw materials on American soil” in the coming years.
The proposed equipment purchase encompasses screen-printing production lines essential for solar cell fabrication. Portions of this equipment will require export authorization from China’s commerce ministry prior to international shipment.
Suzhou Maxwell Technologies emerges as the primary contender for this contract. As the globe’s leading manufacturer of screen-printing equipment designed for solar cell production, the company has initiated the process of obtaining Chinese regulatory authorization.
Two additional Chinese manufacturers are also competing for the contract: Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology. Stock prices for all three companies surged over 7% following the Reuters disclosure.
Industry sources indicate the Chinese suppliers have received instructions to complete equipment delivery by autumn this year. According to two sources, the machinery will be transported to Texas facilities.
Musk intends to utilize the solar production capacity primarily for Tesla’s internal operations, though a portion will also supply power for SpaceX satellites, according to informed sources.
Reliance on Chinese Technology for American Production
This transaction underscores a fundamental contradiction within U.S. industrial strategy. While the nation seeks to minimize Chinese dependency — reconstructing domestic solar production capabilities still necessitates acquiring equipment from Chinese manufacturers.
Solar manufacturing equipment received a tariff exemption from the Biden administration in 2024, following advocacy from U.S. solar producers who emphasized the absence of viable domestic alternatives. The current Trump administration has maintained this exemption.
Musk has voiced opposition to tariff policies, contending they create “artificially high” solar costs during a period of accelerating power demand. U.S. electricity consumption reached unprecedented levels in 2025 and projections indicate continued growth through 2027, according to Energy Information Administration data.
Tesla maintains relationships with approximately 400 China-based suppliers to maintain competitive pricing, with 60 providing components for Tesla’s global operations, including American manufacturing facilities. Production of the Cybertruck and Semi experienced disruptions last year when Chinese component deliveries halted following tariff increases.
An Extraordinary Objective — With Historical Context
Establishing 100 GW of solar manufacturing infrastructure within a two-to-three-year window represents a monumental challenge. For perspective, U.S. total electricity generation capacity stood at approximately 1,300 GW in 2024, with solar energy contributing merely 135 GW to that total.
Musk’s track record includes ambitious deadlines that frequently extend beyond original projections. Nevertheless, the magnitude of this potential equipment acquisition — valued at 20 billion yuan — indicates substantial commitment beyond rhetoric.
Tesla, Suzhou Maxwell, Shenzhen S.C New Energy, Laplace Renewable Energy, and China’s commerce ministry all declined commentary when approached by Reuters.
