The solar sector is experiencing significant momentum! On February 4th, solar concept stocks strengthened once again in the A-share market, with the space photovoltaic segment leading the gains. During the session, Tuori Xineng surged directly to hit the daily upside limit, while Zhonglai Co., Ltd. locked in a 20% trading halt. By the midday close, the Space Photovoltaic Index had climbed nearly 3%, while the Photovoltaic Index, Perovskite Battery Index, and Photovoltaic Roof Index all recorded increases exceeding 2%. Market rumors circulated that day suggesting Elon Musk's team had discreetly visited several Chinese photovoltaic enterprises, with a particular focus on companies pursuing heterojunction and perovskite technological pathways. In response to these rumors, a representative from Jinko Solar's investor relations department confirmed that the company had indeed recently engaged with a delegation associated with Musk's team. The delegation inquired about the company's technology reserves and production equipment, though specific details regarding collaboration intentions and the visit's particulars were not disclosed. The representative further indicated, "Other leading domestic photovoltaic manufacturers have also been visited." During the afternoon session, solar concept stocks continued their upward trajectory, with Jinko Solar rocketing to a 20% trading halt in a mere seven minutes. At the time of writing, the Space Photovoltaic Index had advanced over 4%, while the Photovoltaic Index and Perovskite Battery Index both rose more than 3%.
The sector experienced a collective surge. Following substantial gains the previous day, solar concept stocks maintained their strength. By the midday break, Zhonglai Co., Ltd. and Zerun New Energy had hit the 20% limit, while Tuori Xineng, Ya-mart, Tefa Information, Invt, Zyd, Shuangliang Energy, Tiantong Co., Ltd., and over ten other stocks reached the 10% daily limit. Jingsheng Mechanical & Electrical climbed more than 13%, with Opt and Shichuang Energy rising over 15%. Additional rumors suggested Musk's team had recently conducted secretive visits to multiple Chinese PV firms, examining segments from equipment and silicon wafers to battery modules, with a pronounced emphasis on those specializing in heterojunction and perovskite technologies. Another development fueling the solar rally, particularly for space photovoltaics, also involved Musk. On Monday local time, Musk announced that SpaceX had acquired his artificial intelligence startup xAI, a landmark deal unifying his ambitions in AI and space exploration. The transaction reportedly valued SpaceX at $1 trillion and xAI at $250 billion. Musk stated the acquisition was necessary because global power demand for AI cannot be met by "terrestrial solutions," suggesting Silicon Valley will soon need to establish data centers in space to support its AI goals. Following a secondary market stock transaction in December 2025, SpaceX's valuation reached $800 billion. Previous reports indicated the company was planning an initial public offering (IPO) targeting a $1.5 trillion valuation. Proceeds from the listing are expected to fund the development of solar-powered orbital data centers, seen as a potential solution to the energy shortage plaguing AI data centers. Musk has been a primary advocate for this concept, with other startups like Starcloud (backed by Nvidia), Alphabet, and Blue Origin also exploring this direction. On January 22 local time, SpaceX founder Musk announced at the Davos Forum that SpaceX and Tesla plan to build a total of 200GW of photovoltaic capacity (100GW each) in the U.S. within the next three years, primarily to power ground-based data centers and AI satellites in space. This announcement served as the primary catalyst for the surge in space photovoltaic stocks.
Analysts project substantial long-term potential for space-based solar. One research institution highlighted the vast long-term potential of space photovoltaics. SpaceX's application to deploy millions of computing satellites has reinforced expectations for future demand in this niche. Photovoltaic equipment manufacturers positioned to become suppliers are likely the immediate beneficiaries of the space PV trend. A late January filing with the U.S. Federal Communications Commission (FCC) revealed that SpaceX is seeking approval to launch and operate a constellation of up to 1 million satellites possessing unprecedented computational power (orbital data centers) to support advanced artificial intelligence. SpaceX stated in the filing, "To provide the computational power required for large-scale AI inference and data center applications serving billions of global users, SpaceX proposes to deploy a system of up to 1 million satellites operating within narrow orbital shells up to 50 km wide." These satellites are planned for orbits between 500 km and 2000 km altitude, utilizing sun-synchronous orbits with an inclination of approximately 30 degrees. They will be solar-powered and connected to the existing Starlink network via optical links. The scale of this proposal far exceeds the current Starlink network, which already has over 9,600 satellites in Earth's orbit. Guosen Securities noted that the SpaceX development acts as a catalyst for the rapid advancement of space-based computing, recommending attention to companies involved in rocket launch systems, space computing, space photovoltaics, and laser communications. Kaiyuan Securities pointed out that global power demand from data centers is projected to double by 2035, with AI growth being the largest contributor. Meeting this demand by building sufficient power plants and energy infrastructure on Earth presents immense challenges. Deploying satellites in space to harness near-limitless solar energy offers a pathway for scalable, reliable, and sustainable AI growth. Bocom International stated that the global commercial space sector is expanding rapidly. With explosive growth in AI computing demand, space-based data centers are expected to drive further commercial space requirements. Photovoltaics represent the most cost-effective power solution for space activities, with space-based PV holding distinct advantages over ground-based systems. For Low Earth Orbit (LEO) satellites, Heterojunction (HJT) silicon cells are the short-term preference, while perovskite is viewed as the future-leading technology. Guohaisecurities believes that as satellite launches increase and a shift occurs from communication satellites to more power-intensive computing satellites, energy demand in space is poised for sustained high growth. With photovoltaics currently standing as the only reliable energy source in space, the sector could witness a new wave of capacity expansion. Global satellite deployment is expected to enter a high-growth phase, sustaining strong demand for space photovoltaics, leading the firm to maintain its "Recommended" rating for the industry.
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