Tesla in Talks for $2.9B Solar Equipment from China

Tesla is in advanced negotiations to purchase approximately $2.9 billion worth of solar manufacturing equipment from Chinese suppliers, a key step toward CEO Elon Musk's goal of establishing 100 gigawatts of annual solar production capacity in the United States by the end of 2028.

The deal, valued at about 20 billion yuan, involves screenprinting production lines essential for fabricating solar cells. Leading candidate Suzhou Maxwell Technologies, the world's largest producer of such equipment, has initiated the process for export approval from China's commerce ministry. Other firms in discussions include Shenzhen S.C. New Energy Technology and Laplace Renewable Energy Technology. Sources familiar with the matter indicate that suppliers have been instructed to deliver the equipment before autumn, with shipments directed to Texas, aligning with Tesla's expanding manufacturing presence there, including its Austin Gigafactory and a new Houston facility for energy storage products.

Musk outlined the ambitious target during a January speech at the World Economic Forum in Davos, stating that solar power "could meet all of the electricity needs of the United States," including rising...