Samsung's Taylor, Texas plant will begin producing the A16 chip for new Tesla vehicles and robotaxis in the years ahead.

Elon Musk announces major deal with Samsung for Tesla's next-gen AI6 chip, signaling renewed focus on his companies and ambitious targets.

The stock of Tesla (TSLA) is up 4% on July 28 after the electric vehicle maker announced that it has entered into a $16.5 billion contract with Samsung Electronics (SSNLF) to supply it with semiconductors.

Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 4% in the afternoon session after the company announced a significant, multi-billion dollar contract with Samsung Electronics to produce its next-generation AI chips.

Tesla ( NASDAQ: TSLA) CEO Elon Musk on Sunday confirmed that the EV maker has signed a $16.5 billion semiconductor supply deal with Samsung Electronics ( OTCPK:SSNLF ), identifying Tesla as the unnamed party in a regulatory filing posted by the South Korean tech giant earlier.

Tesla CEO Elon Musk said the U.S. automaker had signed a $16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant’s loss-making contract manufacturing business.

On July 28, Elon Musk posted a message on X, which updated the current position of the $16.5 billion deal. Elon Musk has initiated a proposal to accompany Samsung in the manufacturing of the chip factory required for the project. Moreover, the manufacturing unit is very close to Musk’s home in Taylor, Texas, making it convenient for him to manage.

Samsung Electronics (SSNLF) has entered into a $16.5 billion U.S. contract for supplying semiconductors to electric vehicle maker Tesla (TSLA). The effective start date of the contract was July 26, 2025 and its end date is Dec.

Samsung has secured a $16.5 billion chipmaking deal with a mystery global client, boosting its foundry ambitions amid stiff AI competition and looming U.S. tariff risks.