Tesla Unveils Ambitious 100 GW Solar Manufacturing Plan

Morgan Stanley sees $20-$50 billion in potential value boost from Tesla's solar expansion

Published on Feb. 14, 2026

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Tesla plans to build 100 GW of annual solar manufacturing capacity, requiring $30-$70 billion in investment. Morgan Stanley values Tesla's current energy business at $140 billion and estimates the solar expansion could add $20-$50 billion in equity value. The 100 GW capacity would make Tesla the largest U.S. solar manufacturer, dwarfing current leader First Solar's projected 17.7 GW by 2027. A large portion of the solar capacity is expected to power data centers in space, aligning with Musk's goal to avoid energy bottlenecks.

Why it matters

Tesla's ambitious solar manufacturing plans represent a major strategic shift for the company, moving beyond electric vehicles into large-scale renewable energy production. This move could significantly boost Tesla's energy business and diversify its revenue streams, but will also require substantial capital investment at a time when the company's EV sales face headwinds.

The details

Tesla plans to build 100 GW of annual solar manufacturing capacity, requiring $30-$70 billion in investment not included in its current $20 billion capex guidance for 2026. Morgan Stanley values Tesla's current energy business at $140 billion and estimates the solar expansion could add $20-$50 billion in equity value. The 100 GW capacity would make Tesla the largest U.S. solar manufacturer, far exceeding current leader First Solar's projected 17.7 GW by 2027. A large portion of the solar capacity is expected to power data centers in space, aligning with Musk's goal to avoid energy bottlenecks.

  • Tesla unveiled the 100 GW solar manufacturing plan during its Q4 2025 earnings call last month.

The players

Tesla, Inc.

An American electric vehicle, energy storage, and solar panel manufacturer founded in 2003 and led by CEO Elon Musk.

Elon Musk

The CEO and co-founder of Tesla, who announced the company's ambitious 100 GW solar manufacturing plan.

Morgan Stanley

A global financial services firm that values Tesla's current energy business at $140 billion and estimates the solar expansion could add $20-$50 billion in equity value.

First Solar

The current leader in U.S. solar manufacturing, with projected capacity of 17.7 GW by 2027, which would be dwarfed by Tesla's 100 GW plan.

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What they’re saying

“The solar opportunity is underestimated.”

— Elon Musk, CEO, Tesla (Tesla Q4 2025 Earnings Call)

“An audacious, ambitious project.”

— Seth Winger, Senior Manager for Solar Products Engineering, Tesla (LinkedIn)

What’s next

Tesla is evaluating multiple U.S. sites, including New York, Arizona, and Idaho, for the new solar manufacturing facilities. The company is also hiring engineers and scientists to support the massive scale-up.

The takeaway

Tesla's shift into large-scale solar manufacturing represents a bold strategic move to diversify beyond electric vehicles and become a dominant player in renewable energy. If successful, this could significantly boost the company's energy business and provide a hedge against potential headwinds in its core EV operations.