Shares of Chinese solar panel manufacturers surged sharply on Wednesday, after local media reported that a team linked to Elon Musk had recently visited several photovoltaic suppliers in China, igniting speculation that the Tesla and SpaceX chief could become a high-profile customer for advanced solar technologies.
The reports, which emerged amid Musk’s public emphasis on expanding U.S. solar cell production, triggered a wave of momentum trading and short-covering in a sector long battered by oversupply and margin compression. JinkoSolar, one of the world’s largest solar module producers, rocketed as much as 20% in early trade, hitting its daily limit according to LSEG data.
Jolywood Suzhou Sunwatt, a specialist in photovoltaic auxiliary materials, also climbed the 20% daily cap. Trina Solar and Shenzhen Topraysolar gained 8.9% and 10%, respectively, while the CSI All Share Solar Power Equipment Sub-Industry Index jumped 6.8%.
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Local outlets Cailianshe and 21st Century Business Herald reported that Musk-affiliated visitors—allegedly from SpaceX and Tesla—had toured multiple Chinese photovoltaic companies, with particular interest in suppliers developing heterojunction (HJT) and perovskite technologies. These next-generation approaches promise higher cell efficiencies and potentially lower costs if manufacturing hurdles are overcome.
JinkoSolar reportedly confirmed a visit from a Musk-linked team but provided no details on potential business discussions. Other firms visited included GCL Group, TCL Zhonghuan, and Jingsheng Electromechanical, with briefings on granular silicon technology, perovskite operations in the U.S., equipment manufacturing, silicon wafers, and battery modules.
Neither SpaceX, Tesla, nor the visited companies immediately responded to requests for comment, and CNBC could not independently verify the reports. The rally was driven less by changes in fundamentals and more by narrative momentum, according to market participants. Ke Zong, a portfolio manager at a Shanghai-based quantitative fund, told Reuters the surge reflected perceptions that “energy remains the key bottleneck for AI, rather than any shift in the companies’ order books.”
Musk’s comments during Tesla’s latest earnings call last week—that he plans to build 100 gigawatts of solar cell capacity in the United States and that “the solar opportunity is underestimated”—amplified the narrative that tech giants are moving upstream into power generation to support data center expansion.
This speculation ties into exploding energy demands from AI infrastructure. Global data center electricity consumption is projected to double to around 945 terawatt-hours (TWh) by 2030, representing nearly 3% of worldwide usage, according to the International Energy Agency (IEA).
In the U.S., data centers could consume 325-580 TWh by 2028—6.7-12% of total electricity—up from 176 TWh (4.4%) in 2023. AI-specific demand is forecast to surge 31-fold to 14-18.7 gigawatts by 2028, up from 4.5 gigawatts in 2023, accounting for up to 20% of data center power.
This growth strains grids, with U.S. interconnection queues exceeding 1 terawatt (mostly renewables and storage), and average wait times for connections surpassing four years. Tech giants are turning to solar to meet these needs, with hyperscalers signing dozens of deals for over 100 megawatts each since early 2026.
Google, for instance, invested in a Texas solar facility and plans $16 billion in clean energy procurement through 2040. Amazon partnered with Entergy on a $10 billion Mississippi project, adding 650 MW of solar.
Co-located clean energy campuses, like those developed by Google with Intersect Power and TPG Rise Climate, aim to be operational by 2026-2027, reducing power costs by up to 40% via private wires.
Musk’s interest in Chinese solar tech—particularly HJT and perovskites—aligns with these trends. Perovskites could lower costs if scaled, while HJT offers superior efficiency. His January 2026 visit to Taiwanese suppliers and warnings of “massive” memory needs highlight energy as AI’s key constraint.
On X, Musk has praised China’s solar prowess, stating in a January 7 post: “It seems like China listens to everything I say… they’re making vast amounts of solar.”
China dominates global solar manufacturing with over 80% capacity, but oversupply has depressed prices, prompting overseas expansion amid tariffs. JinkoSolar targets 12 GW in Southeast Asia by 2030 and operates a 1.2 million-panel Florida factory.
Despite the enthusiasm, analysts like Morningstar’s Cheng Wang warn stocks are now “fully valued or overvalued,” with space-based solar remaining economically marginal. The rally’s sustainability is believed to hinge on whether Musk-related deals materialize, potentially easing oversupply but likely marginal relative to sector scale.