Tesla Shares Edge Lower As Giant Houston Solar Factory Plans Emerge

• The vertically integrated operation will cover ingot growth, wafer slicing, cell production, and panel assembly, Electrek said.
• The move is likely aimed at fulfilling CEO Elon Musk’s January 2026 announcement at the World Economic Forum in Davos that Tesla would independently build 100 GW per year of U.S. solar manufacturing capacity by 2028.
• Tesla’s energy generation and storage segment has emerged as the company’s fastest-growing and most profitable division.

Tesla (TSLA) shares edged 3% lower on Tuesday amid broader market pressures, even as reports emerged of the electric-vehicle maker’s plans to massively scale U.S. solar manufacturing with a new Houston factory.

Tesla is building a giant solar-panel factory in Brookshire, Texas, near Houston, co-located with its Megapack Megafactory at the Empire West Business Park, Electrek reported on Tuesday, citing sources familiar with the plans.

The vertically integrated operation will cover ingot growth, wafer slicing, cell production, and panel assembly, Electrek said.

The move is likely aimed at fulfilling CEO Elon Musk’s January 2026 announcement at the World Economic Forum in Davos that Tesla would independently build 100 GW per year of U.S. solar manufacturing capacity by 2028. It further comes as the energy generation and storage segment has emerged as the company’s fastest-growing and most profitable division.

Tesla’s Energy Business

Tesla entered the energy generation business in 2016 by acquiring SolarCity for $2.6 billion, integrating the solar-panel installer—founded by Elon Musk’s cousins Lyndon and Peter Rive—into its growing energy storage portfolio that began with the Powerwall launch the previous year.

Annual revenue for the segment climbed from $6.04 billion in 2023 to $10.09 billion in 2024—a 67% surge—before rising another 27% to $12.8 billion in 2025, fueled primarily by surging demand for Megapack utility-scale batteries and Powerwall residential systems. The division has consistently delivered gross margins above 30%, providing a valuable counterweight to cyclical pressures in Tesla’s automotive business.

In Q1 2026, however, segment revenue fell 12% year-over-year to $2.41 billion amid seasonal factors and lower deployments.

How Did TSLA Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock fell from ‘bullish’ to ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘high’ levels.

A Stocktwits user expressed optimism for Tesla eventually merging with Elon Musk’s rocket manufacturing company, SpaceX.

Another noted that Tesla’s EV deliveries, meanwhile, have been on a decline. After peaking at approximately 1.81 million vehicles in 2023, annual vehicle deliveries slipped to roughly 1.79 million in 2024 and then dropped another 8.6% to 1.636 million in 2025.

TSLA stock has risen 17% over the past 12 months.

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