Tesla Plans $2.9B China Solar Deal to Boost U.S. Capacity

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: March 20, 2026

Key Moments

Tesla (NASDAQ:TSLA) plans to buy about $2.9 billion in solar equipment from Chinese suppliers, according to a Reuters report.
The move supports Tesla’s goal of building 100 gigawatts of U.S. solar capacity by 2028.
As a result, Tesla’s 2026 capital spending could exceed its $20 billion guidance, analysts say.

Scope of Tesla’s Solar Equipment Purchase

Tesla is preparing a major investment in solar manufacturing equipment. According to Reuters, the company plans to spend about $2.9 billion on machinery from Chinese suppliers.

The supplier list includes Suzhou Maxwell Technologies, Shenzhen SC New Energy Technology, and Laplace Renewable Energy. Together, they provide key tools for solar production. This effort also reflects Elon Musk’s push to expand U.S. solar manufacturing.

Strategic Goal: 100 GW of U.S. Solar Capacity

Tesla aims to reach 100 gigawatts of solar manufacturing capacity in the United States by 2028. To achieve this, the company is investing in production lines and advanced equipment. These systems will support large-scale solar component manufacturing.

Item	Detail
Planned equipment spend	About $2.9 billion
Key Chinese suppliers	Suzhou Maxwell Technologies, Shenzhen SC New Energy Technology, Laplace Renewable Energy
Capacity target	100 GW U.S. solar manufacturing capacity by 2028

Regulatory Approvals and Logistics

However, some equipment will require export approval from Chinese authorities. This includes screen-printing production lines used in solar cell manufacturing.

Deliveries are expected before autumn. In addition, shipments may be directed to Tesla facilities in Texas.

Planned Use of New Capacity

Tesla plans to use most of the new capacity internally. At the same time, part of the generated power could support SpaceX operations.

Implications for Suppliers and Tesla Spending

The deal could support Chinese equipment makers facing weak domestic demand. Therefore, the order may provide a timely boost to their business.

Meanwhile, the investment could lift Tesla’s overall spending. Analysts expect the $2.9 billion commitment to push 2026 capital expenditures above the company’s $20 billion guidance.