Tesla Inc. is in discussions with Chinese companies to purchase approximately $2.9 billion worth of solar equipment, according to sources familiar with the matter.

The potential deal would represent a significant expansion of Tesla's solar business operations, which the electric vehicle manufacturer has been developing alongside its automotive and energy storage divisions. Tesla currently produces solar panels and solar roof tiles through its energy generation and storage segment.

The negotiations involve multiple Chinese suppliers, though the sources did not specify which companies are participating in the discussions or provide details about the timeline for any potential agreement. The solar equipment market has seen increased activity as demand for renewable energy solutions continues to grow globally.

Tesla's energy business has been a smaller but growing component of the company's overall operations, complementing its core electric vehicle manufacturing. The company has positioned itself as a comprehensive sustainable energy provider, offering solar generation, energy storage, and electric transportation solutions.

Neither Tesla nor the Chinese companies allegedly involved in the discussions have publicly commented on the reported negotiations. The talks come as the solar industry continues to expand amid increasing focus on renewable energy adoption worldwide.