Aerospace giant SpaceX is planning to build a massive 10-gigawatt solar manufacturing facility near Austin as part of Elon Musk’s goal to power AI data centers in space. According to permit filings submitted to Bastrop County and obtained by Bloomberg News, the Bastrop, Texas, facility would have two floors, with each floor capable of producing five gigawatts of solar cells. The project appears connected to SpaceX’s plan to double the size of its existing Bastrop site this year, where it also plans to produce solar cells and new Starlink products.
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Interestingly, the project fits with Musk’s view that solar power could help solve the energy bottleneck that is slowing down AI infrastructure growth. At the World Economic Forum in January, he said that EV maker Tesla (TSLA) and SpaceX each aimed to build 100 gigawatts per year of U.S. solar manufacturing capacity within three years, a target far above current domestic levels. For reference, the U.S. currently has more than 60 gigawatts of annual solar panel capacity, according to the American Clean Power Association, but much of that depends on silicon cells made overseas.
That is why a large domestic solar cell facility from SpaceX would be significant, especially as the U.S. has imposed steep tariffs on solar imports from Asia. However, Tesla may be facing supply issues after The New York Times reported that China blocked Suzhou Maxwell Technologies from exporting high-end solar manufacturing equipment to the company.
What Is the Prediction for TSLA Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 12 Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $403.86 per share implies 3.3% downside risk.
