Venture capitalist Chamath Palihapitiya said Wednesday that Tesla Inc.‘s (NASDAQ:TSLA) expansion into solar manufacturing was essentially a bet on nuclear power, as the automaker weighs a $10.1 billion solar cell plant in Texas.
‘All in on Nuclear’
“Tesla is going all in on nuclear,” Palihapitiya said in a post on X. “Actually, it’s going all in on solar, but they are the same thing, the sun is a nuclear reactor, just farther away.”
Palihapitiya has been a vocal supporter of Musk’s ventures, previously floating the idea of merging Tesla and Space Exploration Technologies Corp. (NASDAQ:SPCX) into a single corporate structure, saying there is “a very obvious industrial logic” to combining the two companies’ capital structures and balance sheets.
Seeks 10-Year Tax Limitation
The Elon Musk-led company is considering the vertically integrated solar cell facility in Fort Bend County, Texas, according to a tax incentive application filed with the state and named “Project Crystal Sun.”
The proposed 3,050-acre site near Richmond would consolidate the full solar production chain, from ingot and wafer manufacturing to module assembly, under one roof.
Tesla is seeking a 10-year property tax limitation from Lamar Consolidated Independent School District, and the filing added that the company is also considering a site outside Texas.
Expands on Tesla’s Existing Solar Business
Tesla currently produces solar panels at a facility in Buffalo, New York, though that plant handles more limited assembly.
Earlier this year, Tesla was reportedly in discussions with several Chinese companies to acquire $2.9 billion worth of solar manufacturing equipment.
The Facility Could Bring Thousands Of Jobs
If approved and built as planned, the project is expected to create 9,712 permanent jobs and 1,147 peak construction positions, with commercial operations targeted for the first quarter of 2029.
Last week, Tesla and SpaceX broke ground on Terafab, a chip manufacturing facility nearby in Grimes County, Texas, that is expected to become the world’s largest building by floor area once completed.
Price Action: The company’s shares fell 1.59% on Wednesday to close at $327.51 and fell 0.16% further in extended trading.
Benzinga edge rankings indicate Tesla’s stock has a Momentum score in the 9th percentile and a Growth score in the 40th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Frederic Legrand – COMEO on Shutterstock.com
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