Samsung and Tesla Shares Rise Strongly Following New Agreement

Tesla shares rose 1.6% today.

Samsung shares also rose 6.8%.

This rise comes as a result of the announcement of a massive deal

valued at approximately $16.5 billion between the two companies.

The agreement stipulates that Tesla's A16 chips will be manufactured at Samsung's facility in Texas.

Tesla CEO Elon Musk stated today:

"Tesla's new factory will specialize in manufacturing the new A16 chips,

 and Samsung has given approval to maximize manufacturing efficiencies."

Bank of America

Bank of America analysts stated that the new deal between Tesla and Samsung

could be a powerful catalyst for long-term growth.

Analysts also noted that it may be too early to see the deal's impact

 on earnings in the near term due to challenges in chip manufacturing.