Tesla’s stock has surged 4% on July 28, with the electric vehicle maker announcing a $16.5 billion contract with Samsung Electronics to supply it with semiconductors. The deal, effective from July 26, 2025, will see Tesla receive AI6 chip designs for its next-generation AI systems.
Tesla CEO Elon Musk confirmed the partnership on social media, stating that Samsung’s new Texas fab will focus on producing AI6 chips. This news has boosted shares of Samsung Electronics, which rose over 6% in early trading to reach their highest level since September 2024.
The deal marks a significant boost for Tesla, following disappointing second-quarter financial results. The company’s share price is down 19% year-to-date. In contrast, Samsung’s contract with Tesla has provided a lift to its own stock price.
Analysts have given mixed views on Tesla’s stock, with a Hold rating among Wall Street analysts. The average TSLA price target implies a 5.44% downside from current levels. However, the partnership with Samsung could potentially improve Tesla’s prospects in the semiconductors market.
Source: https://www.tipranks.com/news/tesla-stock-tsla-pops-4-on-chip-deal-with-samsung