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.

Tesla (TSLA.O) has signed a $16.5 billion deal to source chips from Samsung Electronics (005930.KS), a move that could bolster the South Korean tech giant's unprofitable contract business but is unlikely to help Tesla sell more EVs or roll out robotaxis more quickly.

When Elon Musk’s highly anticipated Tesla Diner opened its doors in Los Angeles on July 21, it garnered significant media attention, with customers lining up for hours to try chef Eric Greenspan’s pie shakes and classic burgers served in Cybertruck-shaped boxes. This past weekend, however, the lines looked a little different.