Tesla Accelerates Its Solar Push, Potentially Boosting China’s Supply Chain

(Austin, 9th) Market sources said Tesla is evaluating the expansion of its solar cell manufacturing footprint across several US locations, aiming to raise annual capacity to 100 gigawatts (GW) within three years. If realised, the move would position Tesla among the few global players with triple-digit GW solar manufacturing capacity.

Sources indicated Tesla plans to expand its Buffalo, New York facility to 10 GW, while considering a second plant in New York. Arizona and Idaho are also being assessed as potential sites.

Analysts view the plan as aligned with CEO Elon Musk’s long-standing vision for low-cost energy and space applications. With falling launch costs and improving battery efficiency, space-based solar power is increasingly seen as a viable energy source for satellites, space computing and deep-space missions over the next decade.

However, analysts note that even with US-based production, China’s solar supply chain—spanning materials, equipment and mass manufacturing—remains difficult to replace. Higher labour costs, supply resilience and policy uncertainty also pose challenges for US manufacturing. The outcome will largely depend on Tesla’s final investment decisions and technology choices.