Tesla wins 50% tax break for $10B Texas solar plant

Tesla received unanimous approval from the Lamar Consolidated Independent School District board for a significant tax break on its upcoming solar manufacturing plant in Fort Bend County, Texas. The company will see its property tax bill cut in half from 2029 through 2038 for the facility, which is expected to cost around $10 billion to construct.

The project, known as Project Crystal Sun, is part of Tesla's effort to expand United States solar manufacturing for commercial and residential use. CEO Elon Musk aims to reach 100 gigawatts of annual domestic solar power production, a target he estimated would take about three years to achieve as artificial intelligence and electric transport increase national electricity demand.

The energy unit contributed 13% of Tesla's total revenue in 2025, up from 10% in 2024. The segment has grown sales by 700% since 2019. In addition to powering data centers, increased electricity generation capacity is expected to support future charging demand for autonomous vehicle fleets such as the Cybercab robotaxi.