Driving the news: Tesla $TSLA ( ▼ 0.67% ) CEO Elon Musk has confirmed a $16.5 billion deal for Samsung to manufacture Tesla's next-generation AI6 semiconductor chips, claiming Samsung's Texas plant will be "dedicated" to Tesla production.
For context: Samsung's Taylor, Texas facility is scheduled to begin operations in 2026, and has received billions in federal CHIPS Act funding.
On X, Musk said he'll "walk the line personally" to speed up progress and noted the plant is "conveniently located not far from my house."
Samsung shares jumped 6.83% while Tesla rose 1.58% following the announcement.
Why it matters: The deal gives Samsung a major customer for its struggling Texas facility, which had been delayed due to lack of buyers. For Tesla, it secures chip supply for self-driving technology as the company pushes its robotaxi ambitions amid slowing EV sales.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
