Photovoltaics are in full swing! Tesla plans to purchase 20 billion yuan of Chinese photovoltaic equipment, with a contract size of gigawatts

# Long Yue

Source: Wall Street CN

Rumors emerged that Tesla is in talks with Chinese suppliers to purchase gigawatt-scale photovoltaic production equipment worth $2.9 billion (approximately RMB 20 billion), to support its goal of building 100 GW of production capacity in the United States. Later, domestic photovoltaic enterprises confirmed the news to the media. Boosted by this, the related photovoltaic sectors of A-shares and Hong Kong stocks all rallied, with Junda Co., Ltd., Shenzhen Jiejiaweichuangwei Electronic Equipment Co., Ltd., Sungrow Power Supply Co., Ltd. and others hitting the trading limit one after another.

The news that Tesla is seeking to purchase $2.9 billion worth of photovoltaic equipment from China has taken the market by storm, driving a comprehensive rally in the photovoltaic sectors of A-shares and Hong Kong stocks on the day.

Specifically, the space photovoltaic concept of A-shares continued to soar. Junda Co., Ltd. hit the trading limit; Shenzhen Jiejiaweichuangwei Electronic Equipment Co., Ltd. touched the 20% trading limit; Maxwave Co., Ltd., Laplace Semiconductor Co., Ltd., Liancheng Numerical Control Co., Ltd., Jinko Solar Co., Ltd. and Autowell Technology Co., Ltd. all surged by more than 10%. Meanwhile, photovoltaic equipment concept stocks witnessed a full-scale surge. Sungrow Power Supply Co., Ltd. hit the 20% trading limit; Sopogy New Energy Co., Ltd. rose by over 19%; Jiuzhou Group Co., Ltd. and AERO Energy Co., Ltd. rose by over 15%; Solaredge Technology Co., Ltd. and GoodWe Power Technology Co., Ltd. rose by over 14%.

In the Hong Kong stock market, the photovoltaic and solar energy sector strengthened in tandem. Junda Co., Ltd. once surged by more than 10%; Xinyi Solar Holdings Ltd. rose by over 4%; Flat Glass Group Co., Ltd. rose by about 4%.

According to media reports earlier in the day, Tesla is seeking to procure photovoltaic production equipment worth approximately $2.9 billion (around RMB 20 billion) from Chinese suppliers. The move aims to support CEO Elon Musk’s goal of adding 100 GW of photovoltaic manufacturing capacity in the U.S. domestic market.

Reports stated that Suzhou Maxwave Co., Ltd. is one of the main candidate suppliers of manufacturing equipment for this photovoltaic project, and other Chinese companies in talks with Tesla for the photovoltaic project include Shenzhen Jiejiaweichuangwei Electronic Equipment Co., Ltd. and Laplace Semiconductor Co., Ltd.

Subsequently, domestic photovoltaic enterprises confirmed the above-mentioned procurement rumors to Shell Finance, and disclosed that the contract scale has reached the gigawatt level.

## Delivery before autumn this year?

Tesla’s ambition for U.S. domestic manufacturing is accelerating its implementation. Citing informed sources, the media reported that Chinese suppliers have been required to deliver this batch of photovoltaic panel and battery manufacturing equipment before autumn this year. Two of the informed sources said the equipment will be mainly shipped to Texas.

Domestic sources indicated that earlier, Musk’s SpaceX team procured equipment from a leading domestic heterojunction (HJT) equipment manufacturer, and the order is expected to be shipped in the first week of May. The export of semiconductor-like products all requires filing and approval by relevant departments, which is still in progress. At the same time, the photovoltaic orders of Musk’s team are divided into two main lines: SpaceX (S-line) and Tesla (T-line), corresponding to the two major application scenarios of space and ground respectively.

Elon Musk stated in January this year that solar energy can meet all of the U.S. electricity demand, including the growing demand from data centers. Tesla’s official website recruitment information also shows that the company’s goal is to "deploy 100 GW of photovoltaic manufacturing capacity using local raw materials in the U.S. by the end of 2028".

## AI power shortage drives Musk to turn to China

Tesla’s turn to China for equipment procurement is behind the complex interweaving of the U.S. power supply and demand pattern and trade policies. According to data from the U.S. Energy Information Administration (EIA), U.S. electricity consumption hit a record high for the second consecutive year in 2025, and will continue to climb in the next two years.

Faced with the severe power shortage brought about by AI data centers and manufacturing industries, Musk has criticized tariff barriers. He pointed out that tariffs have made the economic cost of deploying solar energy in the U.S. "artificially high".

Reports said that in 2024, the Biden administration excluded manufacturing equipment from tariffs at the request of U.S. photovoltaic panel manufacturers, and this exemption was later extended by the Trump administration. This has removed some cost barriers for Tesla’s large-scale procurement of Chinese equipment.

This potential order highlights the practical challenges the U.S. faces in revitalizing its domestic manufacturing industry. Data shows that as of 2024, photovoltaic power accounts for only 10% of the U.S.’s total power generation capacity of 1300 GW. Building 100 GW of photovoltaic manufacturing capacity in a few years is an arduous task.

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