Samsung Electronics has entered into a $16.5 billion contract for supplying semiconductors to Tesla, based on a regulatory filing by the South Korean firm and Tesla CEO Elon Musk ’s posts on X.

Elon Musk said Samsung "agreed to allow Tesla to assist in maximizing manufacturing efficiency" at its chip plant. He will "walk the line personally."

Elon Musk announced Telsa signed a deal for $16.5 billion to obtain semiconductor chips from Samsung Electronic, on Sunday.

Samsung will produce AI6 semiconductors, the next-generation chip, for Tesla’s self-driving mode and other projects.

Wall Street may be skeptical about Tesla’s upcoming quarters, but CEO Elon Musk made four surprising announcements that could be game-changers — if they prove true.

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.

Tesla CEO Elon Musk predicted the automaker could sell over 250,000 Cybertrucks a year, but those stratospheric sales have failed to materialize.

Elon Musk's net worth recently broke $400 billion, although it dropped back down to $364 billion as of this writing in mid-July, according to the Bloomberg Billionaire Index. Much of this wealth