Tesla CEO Elon Musk said a new Samsung plant in Texas will be devoted to making the next generation of semiconductors for the electric vehicle (EV) company as it pushes the needle on artificial intelligence (AI).
In a Sunday post on X, the social media platform he purchased in 2022, Musk said Samsung’s new factory will be “dedicated” to making Tesla’s AI6 chip. Musk said he will also be a presence at the factory 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 comment. The value of the contract is $16.5 billion, according to CNBC.
Tesla’s deal with Samsung could be a major lift for the embattled EV company as it attempts to overcome a serious dip in sales, spurred largely by Musk’s brief alliance with President Trump.
Tesla’s global sales sunk throughout 2025 as Musk led Trump’s Department of Government Efficiency cost-cutting panel. He also spurred backlash to Tesla in Europe by aligning himself with far-right political figures and attacking Ukrainian President .
Musk left the White House in May after a nasty blow-up with Trump over the president’s sweeping tax-cut bill, which coincided with the end of the billionaire’s appointment as a special government employee. But Tesla has still faced serious financial blowback, and Musk said he expects the company to suffer from several more “rough” quarters ahead.
Even so, Tesla remains a favorite tech stock among Wall Street analysts, given the company’s stranglehold over the U.S. EV market and Musk’s heavy investments in AI. Advanced AI chips are a crucial part of Musk’s plans to create fully autonomous vehicles, as well as his growing focus on generative AI through Grok, his chatbot.
