Tesla is preparing to build a massive solar panel factory just 45 minutes southwest of Houston, a project that could cost up to $10.1 billion. The company has filed documents with the state of Texas, revealing plans for a facility dubbed 'Project Crystal Sun' that would create roughly 9,700 full-time jobs. Tesla is also seeking tax incentives to offset some of the financial burden, while keeping its options open across other U.S. states. Main Developments According to the filings, Tesla's accountants estimate that without incentives, the property tax liability for the project would reach about $1.1 billion over 37 years. The factory aims to break ground this year, with completion targeted for 2028. The first solar panels are expected to roll off the production line in 2029. Tesla has not publicly disclosed the factory's annual output, but the company has previously stated its goal of building 100 gigawatts of manufacturing capacity in the U.S. by 2028. The filings also do not clarify whether the panels will be used for terrestrial installations or for satellites—a notable ambiguity given CEO Elon Musk's well-known enthusiasm for orbital data centers. Read also: Why 100-Hour Batteries Are the Grid's New Power Play Background This move aligns with Tesla's broader push into renewable energy manufacturing, a sector where it already produces solar roofs and battery storage systems. The company's interest in space-based applications is also not new; Musk, who also runs SpaceX, has repeatedly touted the potential of orbital infrastructure. However, Tesla has remained tight-lipped about the specific end-use of the panels from this new Texas facility. Why It Matters The scale of this investment underscores Tesla's ambition to dominate solar energy production, not just electric vehicles. A factory of this size could significantly boost U.S. solar manufacturing capacity, reducing reliance on imports and supporting domestic job growth. The tax incentive request highlights the competitive nature of state-level economic development, as Texas vies with other states to attract major clean energy projects. What's Next With a groundbreaking targeted for this year, Tesla will need to finalize its site selection and secure the requested incentives. The company's decision on whether to proceed in Texas or elsewhere will hinge on state and local government responses. Observers will also watch for clarity on the panels' intended market—whether for ground-based solar farms or space-based applications—which could shape the project's impact on both the energy and aerospace sectors.