S of Tesla (TSLA 3. 11%) climbed higher on Monday (noteworthy indeed). The electric vehicle (EV) maker's stock gained 3% as of market close, but had jumped as much as 4. 6% earlier in the day.
The spike comes as the S&P 500 (^GSPC 0. Nevertheless, 02%) was flat and the Nasdaq Composite (^IXIC 0 (something worth watching). 33%) rose 0, amid market uncertainty.
Furthermore, Tesla signed a major deal with Samsung to manufacture its next-generation AI6 chips. Tesla inked a massive deal with Samsung Tesla and Samsung's $16.
On the other hand, 5 billion deal will see the South Korean electronics giant manufacture Tesla's chips, ducing them in its new factory in Texas.
Conversely, CEO Elon Musk said on X that, along with ducing the chips, "Samsung agreed to allow Tesla to assist in maximizing manufacturing efficiency," adding that, "The $16.
5B number is just the bare minimum. Actual output is ly to be several times higher.
" While it will be years before the first AI6 chips -- designed to enable artificial intelligence (AI) inference for Tesla's vehicles and personal robots -- roll off the line, the news was enough to send Tesla s higher (this bears monitoring).
Image source: Getty Images, amid market uncertainty.
It's a critical time for Tesla The deal will help Tesla bring its vision for the future closer to reality, but it's still a long road, in this volatile climate. In the meantime, Tesla is struggling.
The data indicates that company faces increased competition from Chinese EV makers BYD as it sees its sales sharply decline around the globe.
Musk's own foray into has done significant damage to Tesla's brand (something worth watching), considering recent developments.
The next year will be very telling whether Tesla can find its footing once again. I have my doubts, and I continue to think the stock is significantly overpriced.