Key Highlights
- The electric vehicle manufacturer is negotiating to acquire approximately $2.9 billion in solar production equipment from China-based suppliers
- Suzhou Maxwell Technologies emerges as primary contender and is pursuing Chinese export authorization
- Additional suppliers under consideration include Shenzhen S.C New Energy and Laplace Renewable Energy Technology
- Delivery timeline targets autumn, with Texas identified as the destination
- Musk’s ambitious plan aims to establish 100 GW of domestic solar production capacity by 2028’s conclusion
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 ambitious vision to establish 100 gigawatts of solar manufacturing capability within the United States by the close of 2028.
$TSLA
NEWS: Tesla in talks with Chinese firms to buy $2.9 billion worth of solar equipment.Suzhou Maxwell Technologies, the world’s biggest producer of screen-printing equipment used to make solar cells, is among the leading candidates to supply machinery for the project and… pic.twitter.com/hGw4VYCX89
— Tsla Chan (@Tslachan) March 20, 2026
During January remarks, Musk outlined how solar energy could satisfy America’s complete electrical requirements — accounting for escalating consumption from artificial intelligence data facilities. Internal job listings from Tesla explicitly reference the objective: achieving 100 GW of “solar manufacturing from raw materials on American soil” in the coming years.
The proposed equipment acquisition encompasses screen-printing manufacturing lines utilized in solar cell production. Certain components will require authorization from China’s commerce ministry prior to international shipment.
Suzhou Maxwell Technologies stands as the leading contender for this transaction. As the globe’s largest manufacturer of screen-printing equipment designed for solar cell production, the company has initiated the process of obtaining Chinese regulatory authorization.
Two additional Chinese corporations are being considered: Shenzhen S.C New Energy Technology and Laplace Renewable Energy Technology. Following the Reuters disclosure, all three companies experienced stock increases exceeding 7%.
Industry sources indicate the Chinese manufacturers have received instructions to complete delivery by autumn this year. Multiple sources confirmed the equipment’s destination would be Texas.
According to individuals briefed on the strategy, Musk intends to dedicate the majority of solar production capacity to Tesla’s internal operations, with a portion designated for powering SpaceX satellite systems.
Sourcing From China While Building in America
This transaction underscores a fundamental challenge within U.S. manufacturing strategy. While the objective is reducing Chinese dependency, reconstructing domestic solar production infrastructure still necessitates purchasing equipment from Chinese manufacturers.
The Biden administration exempted solar manufacturing equipment from tariff structures in 2024, responding to domestic solar producers who emphasized the absence of American-made alternatives. This exemption remains under the current Trump administration.
Musk has voiced opposition to tariff policies, contending they create “artificially high” solar economics during a period of accelerating power demand. American electricity consumption reached unprecedented levels in 2025 and is forecast to continue climbing through 2027, according to Energy Information Administration projections.
Tesla continues maintaining relationships with approximately 400 China-based suppliers to manage cost structures, with 60 providing components for global operations, including American manufacturing facilities. Production of the Cybertruck and Semi faced disruptions last year when Chinese component deliveries were suspended following tariff increases.
Bold Vision With Practical Challenges
Establishing 100 GW of solar manufacturing infrastructure within a two-to-three-year window represents an exceptional challenge. To provide perspective, total U.S. electricity generation capacity stood at approximately 1,300 GW in 2024, with solar contributing only 135 GW.
Musk’s track record includes ambitious schedules that frequently require adjustment. However, the magnitude of this potential equipment procurement — valued at 20 billion yuan — indicates substantive commitment beyond mere aspirational statements.
When approached for comment by Reuters, Tesla, Suzhou Maxwell, Shenzhen S.C New Energy, Laplace Renewable Energy, and China’s commerce ministry all declined to provide statements.
