$10 Billion Tesla Solar Factory in Texas? And $20–25 Billion TERAFAB Project in Midst of AI Bubble?

Tesla is planning a large solar cell factory in Texas, near Richmond, about 40 minutes from Houston. The project, called "Project Crystal Sun," would cost around $10.1 billion and cover the full process of making solar cells, from raw wafers to finished, tested panels, rather than just assembling parts made elsewhere. Tesla says the plant would create nearly 9,700 permanent jobs once running, with construction from 2026 to 2028 and operations starting in early 2029. Tesla is still weighing other locations, which may be a negotiating tactic to get a better deal from Texas.

Separately, Tesla and SpaceX are working on an even bigger project, called TERAFAB, expected to cost two to two and a half times as much as the solar factory. It would make computer chips for AI systems, including chips meant for space-based data centers and for Tesla's Optimus robots, which are not yet on the market. Elon Musk has framed it as essential to keeping up with chip shortages tied to the broader AI boom.

For homeowners, none of this changes rebates, incentives, or panel prices right now. It signals that Tesla wants to build more solar cells in the US instead of relying on imports, which could affect future panel availability or costs, but there is no timeline yet for how that might reach the retail market.