Tesla shares climbed Monday following Elon Musk’s announcement of a groundbreaking $16.5 billion deal with Samsung to develop advanced AI chips. The multi-year partnership will support Tesla’s next-generation AI6 chip, which is set to power its humanoid robot Optimus, autonomous vehicles, and AI data centers.
Musk confirmed the deal late Sunday on X (formerly Twitter), calling the agreement “strategically critical” and noting that Samsung’s new Texas-based chip fabrication facility will be dedicated to Tesla’s needs. He added that Tesla will work closely with Samsung to improve manufacturing efficiency and that he intends to personally oversee production progress at the site, conveniently located near his home.
Samsung, while not officially naming Tesla in its public statements, confirmed that the deal accounts for nearly 8% of its projected 2024 revenue and will run through 2033. Musk hinted that the final value could far exceed the initial $16.5 billion figure.
The news comes as Tesla continues to push into AI-driven products, including a potential expansion of its robotaxi service. Business Insider recently reported that Tesla is preparing to launch its ride-hailing service in San Francisco, with the Tesla app now listing California as an available region. The service will reportedly operate under supervised full self-driving (FSD), with safety drivers positioned behind the wheel.
Meanwhile, Tesla stock rose more than 3% Monday to close at $325.59, bouncing back from a dip last week. Despite recent volatility—largely driven by Musk’s statements on politics, trade tensions, and evolving product rollouts—the stock remains up 37% since the company’s April Q1 earnings call, thanks to investor optimism around Tesla’s AI initiatives and robotaxi developments.
The company’s long-term outlook is still mixed, with Tesla stock 33% below its all-time high and down 19% year-to-date. It holds a 51 Composite Rating, a 70 Relative Strength Rating, and a 56 EPS Rating, according to IBD metrics.
As Tesla deepens its investment in artificial intelligence and chips, the Samsung partnership signals a major pivot toward vertical integration and long-term AI infrastructure—elements Musk believes are central to Tesla’s future.
