News
Tesla Samsung AI6 deal can shake up chip industry’s power balance: Top Apple analyst Ming-Chi Kuo
Tesla deal could reinvigorate the South Korean tech giant’s foundry business, the analyst noted.
Renowned tech analyst Ming-Chi Kuo of TF International Securities has shared some insights on Tesla’s $16.5 billion AI6 deal with Samsung. As per the analyst, the deal is a valuable opportunity for Tesla to bolster its chip design and manufacturing expertise.
Kuo’s endorsement, which was posted on X, highlighted the deal’s potential to reshape the electric vehicle maker’s supply chain and strengthen its standing in the semiconductor landscape.
Tesla’s Strategic Gain
Kuo, who widely regarded as the “best Apple analyst on the planet” due to his eerily accurate forecasts, noted that the Tesla-Samsung partnership is a game-changer. He emphasized that Tesla’s access to Samsung’s Texas foundry will enhance the EV maker’s chip design capabilities. This was highlighted by CEO Elon Musk on X, when he stated that he would be walking the line “personally to accelerate the pace” of the facility’s progress.
“For Elon Musk and Tesla, this represents a valuable opportunity to gain real-world foundry experience at an exceptionally low cost — something TSMC would never allow,” Kuo wrote in his X post.
The deal tasks Samsung’s new Taylor, Texas, facility with producing Tesla’s AI6 chips, which are expected to be used for large volume products like the Cybercab and Optimus. Kuo’s analysis highlighted that the move diversifies Tesla’s reliance on Taiwan Semiconductor Manufacturing Co. (TSMC), which has been contracted to produce the EV maker’s AI5 chip.
Challenges and Optimism
Kuo acknowledged risks in Samsung’s 2nm SF2 process, which has a lower yield compared to TSMC’s 2nm N2 node. Yet, he remains optimistic, noting that “Elon Musk’s execution is proven, and SF2’s adoption of the same GAA technology as SF3 should facilitate mass production.”
Even if Samsung were to falter, Kuo noted that Tesla could simply shift its AI6 deal to TSMC, absorbing design know-how in the process. TSMC, after all, would likely accept Tesla’s business considering the scale of the company’s Cybercab and Optimus business.
“If production falls short of expectations, the worst-case scenario for Tesla would be to shift the order back to TSMC and absorb the resulting delays to AI6. However, Tesla’s edge in real-world AI could significantly reduce the risk of AI6 delays. Regardless, Tesla still gains from enhanced design capabilities and deeper chip manufacturing know-how,” Kuo wrote.
For Samsung, Kuo sees the deal as a low-risk, high-reward scenario. The Tesla deal could then reinvigorate the South Korean tech giant’s foundry business, positioning Samsung as a viable TSMC rival.
“If AI6 reaches mass production smoothly, chip design and manufacturing could become a core competitive advantage across Elon Musk’s businesses — enabling greater flexibility and lower costs. While Samsung may not fully catch up with TSMC in advanced nodes, it has at least discovered a new business model that actively involves customers in the manufacturing process,” the analyst wrote.
Tesla is expanding its Semi charging infrastructure once again, this time to a facility owned by PepsiCo, near Denver, Colorado.
The Tesla Semi is the company’s all-electric Class 8 truck, and it’s been used by PepsiCo. and its subsidiary Frito-Lay, for a few years now, as part of a pilot program. They are two of several companies that have had exclusive access to the Semi for regional deliveries since 2022.
These regional deliveries performed by PepsiCo. and others are taking the Tesla Semi from California to Arizona, New Mexico, Nevada, and Colorado. The need for a solid, reliable charging infrastructure is becoming more evident, especially as Tesla is planning to start mass production of the Semi in the coming months.
It will build these units near its Gigafactory in Reno, Nevada, at a plant that it has been building since 2024.
That infrastructure is growing, as Tesla has submitted permitting to build a new six-stall Semi charging facility in Denver:
PepsiCo is building a new Semi Charging station at one of their facilities in Denver, Colorado!!
Permits were submitted earlier this month for the addition of 6 Semichargers at the company’s Pecos St distribution center.
H/T: @AlejandroEV66 pic.twitter.com/1tCTDigRo9
— MarcoRP (@MarcoRPi1) July 27, 2025
This is the location of a PepsiCo. distribution center near Denver. The Semi is evidently ready to start delivering to this location, but more charging is needed at the site to ensure the proper infrastructure is available.
PepsiCo. is putting forth a solid effort to increase its sustainability as a company. It has utilized the Tesla Semi for several years.
It has been a reliable partner for Tesla in the early testing of the vehicle, providing valuable data for the company, as it has handpicked the entities that have had access to the truck.
Tesla Semi dominates in real-world tests during Run on Less event
The expansion comes just after PepsiCo. filed to build 18 Tesla Semi chargers at another facility near Charlotte, North Carolina.
News
Tesla sends cryptic message that Robotaxi expansion is imminent
Tesla looks to be imminently launching Robotaxi rides in California.
Tesla has sent a cryptic message that the expansion of its Robotaxi platform is imminent in an area that the company indicated is a target of the ride-hailing service.
Tesla Robotaxi is currently available in Austin, Texas, but the company has stated for some time that its intention is to expand to California, among other states.
Now, it seems that Tesla is closer than ever to launching Robotaxi in California, based on a new message it sent to users of its Robotaxi app.
We received the message over the weekend, and it required us to accept and agree to new terms. Here’s what it said:
“If your ride is taking place outside of California, it is being conducted autonomously…If your ride is taking place in California, it is being conducted with a safety driver using FSD (Supervised) pursuant to authority from the California Public Utilities Commission.”
🚨 Tesla Robotaxi is close to offering rides in California based on this new message we got in our app.
There is no geofence currently set up in the Bay Area, but we’ll monitor it moving forward. pic.twitter.com/ZrKAqDqQs9
— TESLARATI (@Teslarati) July 26, 2025
The message basically states that Tesla’s Robotaxi rides in Austin will differ from the ones that take place in California in a big way.
In Texas, there is nobody in the driver’s seat. There is a Safety Monitor in the passenger’s seat who simply ensures that everything goes smoothly:
Watch the first true Tesla Robotaxi intervention by safety monitor
In California, there will be a monitor in the driver’s seat, so it will essentially be the same as taking a ride in a vehicle with Full Self-Driving (Supervised).
This will, without a doubt, be a vocal point of the skeptics of the Robotaxi program, but for now, it is proof of Tesla’s “paranoid” focus on safety.
There has not been any established geofence in California within the Robotaxi app, so the program is not yet active in the state. However, it seems the release of the Robotaxi platform in the Golden State is imminent.
Investor's Corner
Tesla Robotaxi execution should lead to valuation ‘far exceeding current levels’: analyst
RBC Capital bumped its price target on Tesla stock slightly from $319 to $325.
Tesla’s Robotaxi platform is the primary focus for the automaker currently, and based on what has been outlined by the company as goals for the project, one firm is saying that the company’s valuation should “far exceed even current levels.”
The Robotaxi is a self-driving ride-hailing service that Tesla plans to implement in current and future vehicle builds. CEO Elon Musk and other executives have said that “the vast majority of the Tesla fleet that we’ve made is capable of being a Robotaxi,” thanks to its development of Over-the-Air software updates that increase the capability of the vehicle with a simple download.
Currently, the Robotaxi platform is only active in a portion of Austin, Texas, but Tesla is expanding to other markets, including California, Nevada, Arizona, and Florida. California will be the next market to open its doors to the Tesla Robotaxi platform.
🚨 Tesla Robotaxi is close to offering rides in California based on this new message we got in our app.
There is no geofence currently set up in the Bay Area, but we’ll monitor it moving forward. pic.twitter.com/ZrKAqDqQs9
— TESLARATI (@Teslarati) July 26, 2025
But the name of the game is execution, and that’s what Tesla is aiming for in a timely fashion. If it can come through on all of its current goals, its valuation could explode, and one firm is holding steady on that narrative as Tesla continues to work toward expanding Robotaxi.
On Tuesday, RBC Capital analysts bumped their price target on Tesla shares (NASDAQ: TSLA) to $325 from $319, primarily due to the Robotaxi expansion and its success:
“Should Tesla be successful on all of its goals, its valuation could far exceed even current levels. The Austin Robotaxi launch has been better than many feared, and the company is looking to expand in more cities.”
There are some risks to Tesla’s narrative, but they fall outside the scope of what the company can control. In relation to Robotaxi, regulatory hurdles remain. Some regions may be slower than others to give Tesla the proper licensing to operate in their jurisdiction. This could slow the pace of Robotaxi expansion, bringing some overhang to the story.
Additionally, Tesla is fending off narratives of slowing demand, and the White House’s decision to revoke the $7,500 EV tax credit from consumers could temper sales past Q3.
Nevertheless, Robotaxi is where Tesla’s true value seems to be focused. Successfully launching a driverless ride-sharing platform is where the company is putting all of its eggs, and revolutionizing passenger travel is where the focus lies.
RBC Capital’s note continued:
“Regulatory hurdles remain, however. Further, we expect the end of IRA credits and high levels of used EV inventory to pressure the auto business for the next several quarters.”
The slight price target bump puts RBC Capital’s expectations near where the stock is trading, as it is currently priced at around $320 at 9:54 a.m. on the East Coast.
Tesla is expanding Semi charging infrastructure once again
Tesla sends cryptic message that Robotaxi expansion is imminent
Tesla Robotaxi execution should lead to valuation ‘far exceeding current levels’: analyst
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