News of Tesla Motors seeking to purchase $29 billion worth of Chinese photovoltaic equipment has ignited the market, leading to a broad surge in the solar sector across A-shares and Hong Kong stocks today.
Specifically, A-share space solar concepts continued their upward trajectory. Junda Solar hit the daily limit up, while Jiejia Weichuang touched the 20% ceiling. Mayer, Laplace, Linton, Jinko Solar, and Autowell all surged by over 10%. Concurrently, photovoltaic equipment concept stocks experienced a full-scale breakout. Sineng Electric rose by the 20% limit, while First New Energy gained over 19%. Jiuzhou Group and Aisolar Energy advanced more than 15%, with Ginlong Technologies and Enphase Energy climbing over 14%.
In the Hong Kong market, the solar energy sector mirrored the strength. Junda Solar saw an intraday spike of over 10%, while Xinyi Solar increased by more than 4% and Flat Glass Group rose approximately 4%.
According to earlier media reports, Tesla is seeking to procure photovoltaic production equipment valued at around $29 billion from Chinese suppliers. This move aims to support CEO Elon Musk's goal of adding 100 GW of new solar manufacturing capacity within the United States.
Reports indicated that Suzhou-based Mayer is one of the primary candidate suppliers for the manufacturing equipment for this solar project. Other Chinese companies in discussions with Tesla for the project include Jiejia Weichuang and Laplace.
Subsequently, domestic solar companies confirmed the procurement rumors and revealed that the contract scale reaches the gigawatt level.
**Delivery by Fall?**
Tesla's ambition for localized US manufacturing is accelerating. Citing informed sources, media reports stated that Chinese suppliers have been requested to deliver this batch of solar panel and cell manufacturing equipment before the fall. Two of these sources mentioned that the equipment will primarily be shipped to Texas.
Domestic sources indicated that Musk's SpaceX team previously placed an order for equipment with a leading domestic heterojunction equipment manufacturer. This order is expected to ship in the first week of May. Exports of such semiconductor-like products require filing and approval from relevant authorities, a process currently underway. Furthermore, Musk's solar orders are divided into two main lines: SpaceX (S-chain) and Tesla (T-chain), corresponding to space and terrestrial application scenarios, respectively.
Elon Musk stated in January that solar power could meet all of the United States' electricity demands, including the growing needs of data centers. Job postings on Tesla's official website also show the company's target is to "deploy 100 GW of solar manufacturing capacity using raw materials in the United States by the end of 2028."
**AI Power Shortage Drives Musk Towards China**
Tesla's pivot to sourcing equipment from China is set against a complex backdrop of US power supply-demand dynamics and trade policy. According to data from the US Energy Information Administration (EIA), US electricity consumption hit a record high for the second consecutive year in 2025 and is projected to continue rising over the next two years.
Faced with severe power shortages driven by AI data centers and manufacturing, Musk has criticized tariff barriers. He pointed out that tariffs make the economic cost of deploying solar power in the US "artificially high."
Reports indicate that the Biden administration, responding to requests from US solar panel manufacturers in 2024, exempted manufacturing equipment from tariffs, an exemption later extended by the Trump administration. This has partially cleared cost obstacles for Tesla's large-scale procurement of Chinese equipment.
This potential order highlights the practical challenges the US faces in revitalizing its domestic manufacturing. Data shows that as of 2024, solar power accounts for only 10% of the US's total 1300 GW power generation capacity. Establishing 100 GW of solar manufacturing capability within a few years is a formidable task.
Comments