Tesla Plans to Procure Chinese Photovoltaic Equipment, Boosting Sector Profitability Expectations

According to DoNews, Tesla is currently negotiating with companies such as Suzhou Maiwei Technology in China to purchase approximately $2.9 billion (about 20 billion RMB) worth of solar and battery manufacturing equipment. The equipment will be used at the Texas factory in the United States to support Elon Musk’s goal of deploying a 100-gigawatt solar energy full industry chain by the end of 2028. The procurement includes key equipment such as screen printing production lines, some of which require export approval from China, with delivery deadlines set for this fall. The project’s capacity will serve the power needs of Tesla and SpaceX satellites.

This order aligns with market expectations. Elon Musk explicitly stated at the 2026 Davos Forum that the goal is to build 100 gigawatts of photovoltaic capacity by the end of 2028. This procurement is a core supporting move to realize that capacity.

The $2.9 billion order corresponds to a significantly higher per-gigawatt value of photovoltaic equipment compared to the domestic market. The main reason is that Chinese photovoltaic equipment holds a global technological monopoly in areas such as screen printing and HJT production lines, meeting Tesla’s high-efficiency battery mass production needs. Additionally, the U.S. lacks mature local photovoltaic equipment capacity, making reliance on the Chinese supply chain the best option.

This procurement covers both ground-based and space-based photovoltaic scenarios, supporting Tesla’s energy business and SpaceX satellite power needs, aligning with the growing demand for AI computing power and space energy. Some equipment requires export approval, complying with the high-end photovoltaic equipment control regulations in the 2026 Export License Management Goods Catalog. The delivery schedule is clear for this fall, making the order highly certain. Industry-wise, global demand for photovoltaic equipment is shifting toward higher power and efficiency upgrades. Chinese companies hold over 70% of the global supply share. This large-scale purchase will further strengthen China’s dominance in the global market for domestic equipment.

Looking ahead, Tesla’s 100-gigawatt capacity will drive subsequent batches of equipment orders. Overseas equipment orders tend to have higher gross margins than domestic ones, boosting profitability for related companies. The expansion of space photovoltaic scenarios will create demand for new technologies such as heterojunction and perovskite equipment. Once export approval processes are smooth, the pace of Chinese photovoltaic equipment going abroad will accelerate, leading to a period of intensive overseas large-order deployments.

In the A-share market, this event has somewhat boosted risk appetite for photovoltaic equipment, photovoltaic cells, and new energy equipment sectors, creating structural positive effects. High-margin overseas orders improve industry profitability expectations, benefiting leading companies with export qualifications and technological barriers. The sector may show a pattern of strong players gaining an advantage. (Everbright Securities Micro News)