Tesla Inc (NASDAQ: TSLA) stopped selling its premium Solar Roof tiles in August, ending a nearly decade-long residential integration effort. The shift coincides with a push toward utility-scale manufacturing, including a proposed $10.1 billion facility in Texas.

Project Crystal Sun Details

The proposed Fort Bend County facility, dubbed Project Crystal Sun, involves about $1.5 billion in real property and $8.6 billion in equipment. Tesla estimates nearly 9,700 permanent jobs once operational. The company is seeking Texas tax incentives and evaluating multiple U.S. locations, meaning the project is not yet a guaranteed build.

Lamar Consolidated Independent School District was preparing to vote on the proposed tax arrangement as of Tuesday. The Fort Bend site is reportedly one of two locations Tesla is considering. While the filing does not disclose annual production capacity, the project covers the supply chain from ingots and wafers through cells and modules.

Strategic Shift from Residential to Scale

Tesla’s website now directs customers toward conventional solar panels instead of the discontinued roof tiles. Reuters reported that technological and installation challenges limited adoption of the premium product.

This pivot underscores a move from consumer-facing hardware to manufacturing scale. Tesla aims to deploy 100 GW of solar manufacturing in the U.S. by the end of 2028, according to a company job posting reported by Reuters. Elon Musk originally outlined this ambition at Davos in January, stating that both Tesla and Space Exploration Technologies Corp (NASDAQ: SPCX) are working toward 100 GW a year of U.S. solar production each.

The scale is significant against current benchmarks. U.S. solar module manufacturing capacity was estimated at just over 45 GW entering 2026, according to pv magazine, although additional capacity was under development.

AI Power Demand Context

Musk argued at Davos that electrical power could become the limiting factor for AI deployment as chip production accelerates faster than new electricity generation. He specifically pointed to solar and batteries as a way to add large amounts of power.

Tesla’s July earnings commentary similarly highlighted rising electricity demand from transportation electrification and AI. SpaceX is also pursuing large-scale solar manufacturing plans tied to infrastructure ambitions beyond traditional terrestrial power.

What the Numbers Show

The divergence between Tesla’s discontinued residential product and its massive manufacturing ambition highlights a strategic concentration on utility-scale output. With U.S. module capacity at roughly 45 GW entering 2026, Tesla and SpaceX’s combined target of 200 GW annually represents a potential quadrupling of current national manufacturing throughput if achieved by 2028.

The US National Highway Traffic Safety Administration ordered Tesla Inc (NASDAQ: TSLA) to respond to 21 detailed questions regarding its Cybercab robotaxi self-certification by September 30.

NHTSA Chief Counsel Peter Simshauser issued the request under Audit Query AQ26002 on September 10, following the agency's opening of the audit on September 3 after Tesla began commercial deployment in Austin, Texas. Responses must be provided under oath by a Tesla officer.

Regulatory Scrutiny on Driver Controls

Noncompliance carries civil penalties up to $139.35 million and criminal penalties of up to 15 years in prison, or both, according to NHTSA. Regulators are examining whether temporarily installed human driver controls influenced Tesla’s compliance certification and how removing them aligns with federal “make inoperative” rules.

The agency also questioned whether touchscreen controls allow occupants to move the vehicle and how Tesla justifies compliance with Federal Motor Vehicle Safety Standard No. 135, which mandates service brakes activated by a foot pedal.

Missing Features Under Review

The order requires Tesla to detail the presence of mirrors, a self-canceling turn signal, and a shift-position display required under current standards. The two-seater vehicle lacks a steering wheel, brake pedal, and accelerator pedal.

This scrutiny coincides with efforts by Tesla and Alphabet Inc’s Waymo to push federal regulators to eliminate traditional driver-control requirements for autonomous vehicles entirely. The Trump administration has signaled support for this regulatory shift, while safety advocates argue exemptions should wait until robotaxi makers prove safety without human backups. Amazon.com Inc’s Zoox unit won a similar exemption in July.

Operational Challenges Amid Rollout

Tesla’s rollout faces operational hurdles alongside regulatory pressure. A rider reported a trip from 99 Ranch Market to The Domain in north Austin stretched to roughly 70 minutes after the Cybercab avoided highways. Deepwater Asset Management co-founder Gene Munster predicted Tesla could add roughly 300 Cybercabs to its Austin fleet within a month of launch.

Market Performance

Tesla has a market capitalization of $1.40 trillion. TSLA stock closed at $356.58 on Tuesday, down 0.67%. Shares have dropped 20.71% year-to-date. The stock has traded between a 52-week low of $297.38 and a high of $498.83.

What the Numbers Show

The juxtaposition of Tesla’s $1.40 trillion market valuation against a 20.71% year-to-date decline highlights significant investor caution despite aggressive expansion plans. While Gene Munster projects rapid fleet growth of roughly 300 units in Austin within a month, the immediate operational reality involves service disruptions, such as the reported 70-minute detour for a short trip, suggesting that scaling autonomous operations faces tangible execution risks beyond regulatory hurdles.