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In Texas, Elon Musk's empire could soon add a $10 billion Tesla solar plant

"Texas would … become a hub for domestic solar cell manufacturing in the U.S."

Elon Musk.

Photo Credit: Getty Images

According to state records filed in Texas, Tesla may be considering another major expansion in the state, this time focused on manufacturing solar cells and further expanding CEO Elon Musk's growing manufacturing footprint there.

What's happening?

The Houston Chronicle reported that recent school district property tax abatements filed in August that relate to the project show Tesla is considering a $10.1 billion facility in Fort Bend County set to be completed by 2029. 

The application outlines that the investment would create 1,150 construction jobs over a three-year period, the outlet reported. Tesla also said it is considering another possible site and wrote that tax incentives through Texas' Jobs, Energy, Technology and Innovation program "would help to establish the Fort Bend County site as economically competitive in relation to the other site."

If it moves forward, the plant would become the second massive manufacturing proposal linked to Musk's companies in the Houston region. The Houston Chronicle reported that SpaceX and Tesla have also outlined a $16.8 billion semiconductor facility in Grimes County that is expected to create 3,000 jobs.

The prospect also reflects a wider economic pattern in the region. Citing Greater Houston Partnership figures, the Houston Chronicle said advanced manufacturing supported nearly 240,000 jobs in the Houston area in 2025, representing about 7% of the workforce and nearly 17% of regional GDP.

Why does it matter?

The potential project in Fort Bend County could bolster U.S. solar manufacturing at a time when energy prices and supply-chain reliability remain important concerns for both families and businesses.

Over time, more domestic production could improve access to solar equipment and other clean energy products as consumers look for ways to cut utility costs and limit exposure to volatile fuel markets. A project of this size could also support related work in construction, logistics, and local services.

The proposed facility also arrives as Tesla seeks additional avenues for growth beyond car sales.

As cleaner electricity and cleaner transportation become more connected, expanded solar manufacturing could eventually contribute to lower-cost charging, more choices for home energy, and more opportunities to reduce the cost of owning a vehicle.

What's being done?

Tesla is pursuing a local tax-abatement package while it evaluates whether Fort Bend County can beat out at least one rival location. Those kinds of incentives are meant to attract projects that promise major investment and job creation.

The proposal also matches a broader economic-development focus in the Houston area, where business leaders have continued to highlight advanced manufacturing as a major opportunity. A solar cell facility would support that goal by expanding Houston's position in energy technology, not only conventional energy production.

Tesla said, as the Houston Chronicle reported, the stakes are high for Texas. "Should Tesla make the decision to develop the proposed project in another state, Texas would miss the opportunity to attract billions of dollars in investment, help create thousands of full-time jobs for its residents, and become a hub for domestic solar cell manufacturing in the U.S."

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