Laplace Wins Tesla Solar Phase 2 Contract Worth Nearly 10 Billion Yuan
Chinese solar cell equipment provider Laplace has won Tesla's solar manufacturing project Phase 2, with an order value approaching 10 billion yuan (~$1.37B).
The Deal
- Contractor: Laplace (photovoltaic cell equipment provider)
- Client: Tesla
- Phase: Project Phase 2
- Order value: ~10 billion yuan (~$1.37B)
- Context: Tesla plans to purchase $2.9B in solar manufacturing equipment from China
Impact on Laplace
- 2025 revenue: 5.45 billion yuan
- Order/revenue ratio: 183% of annual revenue
- Estimated profit contribution: 12+ billion yuan
- Profit multiplier: 2.12x vs 2025 net profit of 6.12B yuan
Analysis
This contract is transformative for Laplace. An order worth 183% of annual revenue means the company has secured nearly two years of backlog from a single customer. The estimated 12B yuan profit contribution would more than double their net income. For investors, the question is execution risk — delivering on a 10B yuan order to Tesla requires massive capacity expansion, quality control at scale, and working capital management.
For Tesla, sourcing $2.9B in solar equipment from China contradicts the broader US-China technology decoupling narrative. While solar panels (unlike AI chips) haven't been targeted by export controls, the optics of Tesla deepening supply chain dependence on China while other US companies are reducing it are notable. This suggests Tesla's CEO prioritizes cost efficiency over political alignment.
The solar manufacturing equipment sector is one of China's most competitive industries globally. Laplace's win validates Chinese equipment makers' technological leadership in photovoltaic manufacturing.