Tesla CEO Elon Musk stated a brand new Samsung plant in Texas might be devoted to creating the following era of semiconductors for the electrical automobile (EV) firm because it pushes the needle on synthetic intelligence (AI).
In a Sunday put up on X, the social media platform he bought in 2022, Musk stated Samsung’s new manufacturing unit might be “dedicated” to creating Tesla’s AI6 chip. Musk stated he may also be a presence on the manufacturing unit to “assist” Samsung “in maximizing manufacturing efficiency.”
“This is a critical point, as I will walk the line personally to accelerate the pace of progress. And the fab is conveniently located not far from my house,” Musk wrote.
The Hill has reached out to Samsung for remark. The worth of the contract is $16.5 billion, in line with CNBC.
Tesla’s take care of Samsung could possibly be a significant elevate for the embattled EV firm because it makes an attempt to beat a critical dip in gross sales, spurred largely by Musk’s temporary alliance with President Trump.
Tesla’s international gross sales sunk all through 2025 as Musk led Trump’s Division of Authorities Effectivity (DOGE) cost-cutting panel. He additionally spurred backlash to Tesla in Europe by aligning himself with far-right political figures and attacking Ukrainian President Volodymyr Zelensky.
Musk left the White Home in Could after a nasty blow-up with Trump over the president’s sweeping tax-cut invoice, which coincided with the tip of the billionaire’s appointment as a particular authorities worker. However Tesla has nonetheless confronted critical monetary blowback, and Musk stated he expects the corporate to endure from a number of extra “rough” quarters forward.
Even so, Tesla stays a favourite tech inventory amongst Wall Road analysts, given the corporate’s stranglehold over the U.S. EV market and Musk’s heavy investments in AI. Superior AI chips are a vital a part of Musk’s plans to create totally autonomous autos, in addition to his rising concentrate on generative AI by means of Grok, his chatbot.
