Tesla CEO Elon Musk recently expressed his support for space-based photovoltaics at the Davos Forum, providing a much-needed boost to the struggling solar panel sector. On January 23, companies such as Liancheng CNC (920368.BJ) and Optech (920414.BJ) hit their daily limit with a 30% increase, while others like Maiwei Co. (300751.SZ), Laplace (688726.SH), Longi Green Energy (601012.SH), and several more saw their stocks rise by 20%. The solar equipment sector has been particularly noteworthy, with companies like JinkoSolar (688223.SH) and GCL Integrated (002506.SZ) also experiencing significant gains. Additionally, DiKe Co. (300842.SZ) rose by nearly 19%, Trina Solar (688599.SH) increased by over 16%, and Hema (688032.SH) saw an increase of more than 13%. The Hong Kong market mirrored this trend, with solar energy stocks becoming quite active, leading to substantial gains for many.
According to incomplete statistics from Pengpai News, on January 23, over 30 solar concept stocks in the A-share market reached their daily limits, and more than 60 solar stocks recorded increases exceeding 5%. Such a situation has rarely been seen even during the peak of the solar industry a few years ago, as the sector has been under pressure from a significant mismatch between supply and demand.
Musk’s statements at the World Economic Forum on January 22 were the primary catalyst for this surge. During a discussion with BlackRock CEO Larry Fink, he reiterated his belief that solar energy is essential, asserting that space-based AI data centers fueled by solar energy are the ultimate solution. Musk, who is also the CEO of SpaceX and founder of xAI, emphasized that the sun accounts for over 99.8% of the solar system’s total mass and generates nearly all of its energy. This is why SpaceX plans to launch solar-powered AI satellites in the coming years.
“Space is where the true potential for energy lies,” Musk stated. “You don’t need to occupy any space on Earth; the vastness of space allows for incredible scalability, potentially reaching hundreds of terawatts.” He explained that SpaceX aims to achieve full reusability of its Starship by this year. “Once Starship is fully reusable, the cost of space transportation will be lower than that of air freight, significantly reducing the expenses involved in launching numerous satellites. The efficiency of solar energy in space is five times greater than on Earth, and there is constant sunlight with no atmospheric attenuation.” Musk added that constructing solar-powered AI data centers in space is a logical choice.
He further noted that the temperature on the dark side of space is extremely low, meaning that solar panels only need to face the sun, complemented by a cooling system facing away from the sun to ensure efficiency. “In two years, space will become the most cost-effective location for AI deployment, at the latest within three years.” Musk also criticized the high solar tariffs in the U.S., which artificially inflate installation costs. “Tesla and SpaceX have deployed numerous solar projects and aim to achieve a construction target of 100 GW per year in the U.S., which may take about three years,” he emphasized. While he acknowledged that the U.S. tariff policy is beyond his control, he noted that Chinese manufacturers produce high-quality solar products that still offer economic benefits for large-scale deployment.
Musk’s comments closely mirrored a recent three-hour interview on the “Moonshots” podcast, where he described himself as a champion for space photovoltaics. He stated that if 1 million tons of payload were successfully launched into orbit each year, with each ton generating 100 KW, it would equate to 100 GW of solar-powered AI satellites annually. “Moreover, we could potentially reach a target of one terawatt per year.”
Despite these optimistic projections, the photovoltaic industry remains in a deep slump. Recently, some solar stocks have experienced counter-trend increases due to the rising interest in space photovoltaics, rather than improvements in their fundamentals. For example, Junda Co. has seen a strong surge since December 12, 2025, with stock prices skyrocketing by 171% as of January 23, achieving multiple daily limits. In contrast, the company reported a net loss of 1.2 to 1.5 billion for the year, a significant worsening from the previous year’s loss of 591 million.
“Space photovoltaics must endure extreme temperature fluctuations of up to 300°C, strong radiation, and atomic oxygen corrosion, posing a severe challenge to battery life. To achieve the ambitious scale of 100 GW per year, component costs alone could reach hundreds of billions of dollars, not including the exorbitant expenses of launch, construction, and on-orbit maintenance,” remarked an industry insider. The excitement surrounding commercial space concepts has greatly expanded the market’s imagination regarding space photovoltaics, but much of the current interest is driven by speculation. While the future of this technology is promising, investors should proceed with caution in their decisions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/elon-musk-champions-space-solar-power-sparking-rally-in-solar-stocks-with-over-30-companies-hitting-limit-up/
