Tesla in $2.9B Talks With Chinese Firms for 100GW Solar Push

Tesla（TSLA） is talking to suppliers about buying a lot of solar manufacturing equipment worth about $2.9 billion, which is 20 billion yuan. This is interesting because it shows that even though America wants to make its energy Tesla still needs to buy machines from China to make that happen.

Tesla is going to use this equipment to make a lot of panels in the United States. The companys CEO, Elon Musk wants to have 100 gigawatts of manufacturing capacity in the US by the end of 2028. He thinks this is very important to help solve Americas growing power crisis. Elon Musk has talked about this goal, in job postings. He really wants to make it happen. Tesla needs this equipment from China to reach its goal of making a lot of panels in the US.

The Suppliers, the Scale, and the Timeline

Suzhou Maxwell Technologies, the biggest manufacturer of screen-printing machinery used in the production of solar cells, is the front-runner to provide equipment.

According to reports, the corporation is requesting export license from China's commerce ministry, a regulatory procedure that adds uncertainty to an already ambitious delivery timeline. Discussions are also underway with two other providers, Shenzhen S.C. New Energy Technology and Laplace Renewable Energy Technology.

According to two individuals, Chinese businesses were instructed to supply equipment by this autumn, with shipments going to Texas. Before being exported, some equipment, such as production lines for screen printing, must have regulatory approval from China. It's unclear how much of the entire order is subject to that requirement and how long approvals may take.

The final destination is important. A fraction of the solar electricity Musk is constructing will be used to power SpaceX spacecraft, but the majority of it will be used for Tesla's own energy needs. 

Musk has made it clear that the United States cannot afford to ignore the electrical shortage caused by the surge in demand from AI data centers. According to the Energy Information Administration, U.S. electricity consumption reached a second straight record high in 2025 and is expected to continue rising through 2027.

The Tariff Loophole That Makes This Possible

The deal is possible because of a unique and important exception in U.S. trade policy. Tariffs are used to keep cheap Chinese panels and cells out of the American solar market. However, in 2024, the Biden administration made it clear that solar manufacturing equipment would not be subject to tariffs. This was done at the request of U.S. panel makers, who said there was no other domestic source for the machinery needed to build factories. The Trump administration made that provision last longer.

Musk has spoken out about the money side of things. He has said that tariffs make it "artificially high" for the U.S. to use solar power at a time when the country has a fundamental power shortage. This goes against what President Trump wants to do with energy. Trump wants to expand fossil fuels and has cut government funding for solar and wind power.

The bigger irony is not hard to see. Tesla, the company most linked to lowering the U.S.'s reliance on foreign energy, still relies on 400 sources in China to keep its production costs low. Sixty of these providers work with Tesla all over the world, including at its EV plants in the U.S. Last year, production of the Cybertruck and Semi was slowed down when Chinese supplies of parts were stopped because tariffs went up.

Musk's goal of 100 GW by 2028 is very bold, and he has a mixed track record when it comes to meeting tight deadlines. That much solar production capacity could be built in about three years, which would be ten times more than the 135 GW of overall solar capacity in the U.S. in 2024. There is a real risk of performance, and there is a real risk of negotiating tools.

For Tesla owners, the push into solar energy could mean a long-term shift in the company's income from electric vehicles (EVs), which are a business with tight margins, to energy production and storage. Whether this goal becomes a reality or just another broken promise will depend on whether the Chinese equipment shows up on time, gets governmental approval, and turns into gigawatts of power before 2029.