"Samsung Electronics and TSMC to Both Work on Tesla AI5 Chip"

Musk Hints at Closer Collaboration with Samsung
During Earnings Conference Call
Tesla Achieves Highest-Ever Quarterly Revenue

Elon Musk, CEO of Tesla, announced that the company will develop its proprietary artificial intelligence (AI) semiconductor chip, the AI5, not only with Taiwan's TSMC but also with Samsung Electronics.

On October 22 (local time), during Tesla's third-quarter earnings conference call, Musk stated, "Both Samsung Electronics and TSMC will work on the AI5." Until now, Samsung Electronics had produced Tesla's AI4 generation chips, and it was previously understood that production would shift to TSMC for the AI5 generation, with Samsung Electronics resuming production from the AI6 generation onward.

Previously, in July, Musk revealed via the social networking service X (formerly Twitter) that Tesla had signed a large foundry (semiconductor contract manufacturing) agreement with Samsung Electronics. He said, "Samsung's large new plant in Texas will be dedicated to producing Tesla's next-generation AI6 chips. The strategic importance of this cannot be overstated."

In relation to this, Bloomberg News reported, "Tesla will work more closely with Samsung Electronics on the current generation AI5 chip and will not rely solely on TSMC."

Tesla announced third-quarter results of $28.1 billion (approximately 40.28 trillion won) in revenue and earnings per share of $0.50. Revenue exceeded the Wall Street consensus estimate of $26.37 billion compiled by market research firm LSEG, but earnings per share fell short of the expected $0.54. The gross margin was 18%, slightly above the market expectation of 17.5%. Revenue increased 12% year-on-year, marking the highest quarterly revenue in Tesla's history. After two consecutive quarters of declining revenue, the company returned to growth.

Despite the record-high quarterly revenue, net profit plunged 37% to $1.37 billion. Tesla cited increased tariffs, restructuring costs, and decreased revenue from carbon credit sales as the main factors behind the profit decline. The automotive division, which accounts for the majority of revenue, posted $21.2 billion, up 6% from $20 billion in the same period last year. Third-quarter revenue from carbon credits was $417 million, down 44% from the same period last year.

Tesla did not provide forward guidance for future performance. However, it stated that it aims to begin mass production of the robotaxi "Cybercab," the electric truck "Semi," and the energy storage system "Megapack 3" starting in 2026. The company also explained that construction of the first-generation production line for the humanoid robot "Optimus" is underway.