William Blair analyst Jed Dorsheimer was all praise for Tesla Inc (NASDAQ: TSLA) $16.5 billion chip supply agreement with Samsung Electronics in an interview with CNBC today, but he won’t recommend buying the EV stock still.

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

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.

The chairman of South Korea’s Samsung Electronics Jay Y. Lee departed on Tuesday to Washington for a business trip, a company spokesperson said, a day after unveiling a $16.5 billion deal to supply chips made in Texas to Tesla.

Shares of Samsung Electronics (KS:005930) fell about 1% on Tuesday, pausing after a strong rally sparked by news of a $16.5 billion chip supply deal with Tesla (NASDAQ:TSLA). The agreement positions Samsung as a

Samsung will produce Tesla’s next-gen AI chips at its semiconductor plant set to open next year northeast of Austin in Taylor.

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.