Tesla Explores Major China Solar Equipment Deal

Tesla is in talks to buy about $2.9 billion worth of solar manufacturing equipment from Chinese suppliers as it pushes to build a large-scale solar production base in the United States.

The discussions involve equipment for making solar panels and cells, with Chinese firms seen as key candidates because of their strong position in global solar machinery. Some of the equipment may require export approval from Chinese authorities before shipment.

The reported move supports Elon Musk’s goal of building 100 gigawatts of solar manufacturing capacity in the U.S. by the end of 2028. Most of that capacity is expected to support Tesla’s own energy needs, while part of it could also be used for SpaceX-related operations.

The potential order also highlights the complexity of reducing U.S. dependence on China, as American clean energy expansion still relies heavily on Chinese industrial equipment. Even with tariffs in place on many solar imports, manufacturing machinery remains difficult to source elsewhere at scale.

If completed, the deal would represent a major boost for Chinese solar equipment makers while strengthening Tesla’s position in U.S. solar manufacturing during a period of rising electricity demand driven by data centers and industrial growth.