Why Tesla Stock Jumped Today
Tesla inked a $16.5 billion chip manufacturing deal with Samsung to produce its next-generation chips.
The chips will be produced in Texas and are designed to enable advanced artificial intelligence (AI) features for Tesla's vehicles and personal robotics.
Tesla faces major near-term challenges, as sales have slipped globally.
These 10 stocks could mint the next wave of millionaires ›
Shares of Tesla (NASDAQ: TSLA) climbed higher on Monday. 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 (SNPINDEX: ^GSPC) was flat and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 0.3%.
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 $16.5 billion deal will see the South Korean electronics giant manufacture Tesla's chips, producing them in its new factory in Texas.
CEO Elon Musk said on X that, along with producing 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 likely 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 shares higher.
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 the meantime, Tesla is struggling.
The company faces increased competition from Chinese EV makers like BYD as it sees its sales sharply decline around the globe. Musk's own foray into politics has done significant damage to Tesla's brand. 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.
Don't miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this.
On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves:
Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $449,961!*
Apple: if you invested $1,000 when we doubled down in 2008, you'd have $40,603!*
Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $636,628!*
Right now, we're issuing 'Double Down' alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.
*Stock Advisor returns as of July 28, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
6 minutes ago
- Globe and Mail
New US tariffs cloud outlook for exporters in Asia and beyond
BANGKOK (AP) — President Donald Trump's new tariff rates on U.S. imports from dozens of countries took effect Thursday, the latest chapter in the saga of Trump's reshaping of global trade. But many questions remain. Trump has threatened tariffs of up to 200% on imports of pharmaceuticals and has ordered a 100% import tax on computer chips. Most U.S. imports of copper, steel and aluminum are subject to a 50% tariff. There's still no agreement on what tariffs might apply to products shipped from China. India has no deal yet and faces a potential 50% tariff as Trump pressures it to stop buying oil from Russia. Recent data shows uncertainty is clouding the outlook for exporters around the world as a rush to beat the tariffs during a pause for negotiation tapers off. Companies are reporting billions of dollars in higher costs or losses due to the higher import duties. Global financial markets took Thursday's tariff adjustments in stride, with Asian shares and U.S. futures mostly higher. Here's where things stand in what has proven to be a fast-changing policy landscape. The tariffs taking effect this week The tariffs announced on Aug. 1 apply to 66 countries, Taiwan and the Falkland Islands. They are a revised version of what Trump called " reciprocal tariffs," announced on April 2: import taxes of up to 50% on goods from countries that have a trade surplus with the United States, along with 10% 'baseline'' taxes on almost everyone else. That move triggered sell-offs in financial markets and Trump backtracked to allow time for trade talks. The president has bypassed Congress, which has authority over taxes, by invoking a 1977 law to declare the trade deficit a national emergency. That's being challenged in court, but the revised tariffs still took effect. To keep their access to the huge American market, major trading partners have struck deals with Trump. The United Kingdom agreed to 10% tariffs and the European Union, South Korea and Japan accepted U.S. tariffs of 15%. Those are much higher than the low single-digit rates they paid last year, but down from the 30% Trump had ordered for the EU and the 25% he ordered for Japan. Countries in Africa and Asia are mostly facing lower rates than the ones Trump decreed in April. Thailand, Pakistan, South Korea, Vietnam, Indonesia and the Philippines cut deals with Trump, settling for rates of around 20%. Indonesia views its 19% tariff deal as a leg up against exporters in other countries that will have to pay slightly more, said Fithra Faisal Hastiadi, a spokesperson in the Indonesian president's office. 'We were competing against Vietnam, India, Bangladesh, Sri Lanka and China ... and they are all subject to higher reciprocal tariffs,' Hastiadi said. 'We believe we will stay competitive.' The latest situation for China and India Trump has yet to announce whether he will extend an Aug. 12 deadline for reaching a trade agreement with China that would forestall earlier threats of tariffs of up to 245%. Treasury Secretary Scott Bessent said the president is deciding about another 90-day delay to allow time to work out details of an agreement setting tariffs on most products at 50%, including extra import duties related to illicit trade in fentanyl. Higher import taxes on small parcels from China have hurt smaller factories and layoffs have accelerated, leaving some 200 million workers reliant on 'flexible work' — the gig economy — for their livelihoods, the government estimates. India also has no broad trade agreement with Trump. On Wednesday, Trump he signed an executive order placing an extra 25% tariff for its purchases of Russian oil, bringing combined U.S. tariffs to 50%. India's Foreign Ministry has stood firm, saying it began importing oil from Russia because traditional supplies were diverted to Europe after the outbreak of the Ukraine conflict, a 'necessity compelled by the global market situation.' The hardest-hit countries Struggling, impoverished Laos and war-torn Myanmar and Syria face 40-41% rates. Trump whacked Brazil with a 50% import tax largely because he's unhappy with its treatment of former Brazilian President Jair Bolsonaro. South Africa said the steep 30% rate Trump has ordered on the exporter of precious gems and metals has put 30,000 jobs at risk and left the country scrambling to find new markets outside the United States. Even wealthy Switzerland is under the gun. Swiss officials were visiting Washington this week to try to stave off a whopping 39% tariff on U.S. imports of its chocolate, watches and other products. The rate is over 2 1/2 times the 15% rate on European Union goods exported to the United States. Canada and Mexico have their own arrangements Goods that comply with the 2020 United States-Mexico-Canada Agreement that Trump negotiated during his first term are excluded from the tariffs. Even though U.S. neighbor and ally Canada was hit by a 35% tariff after it defied Trump, a staunch supporter of Israeli Prime Minister Benjamin Netanyahu, by saying it would recognize a Palestinian state, nearly all of its exports to the U.S. remain duty free. Canada's central bank says 100% of energy exports and 95% of other exports are compliant with the agreement since regional rules mean Canadian and Mexico companies can claim preferential treatment. The slice of Mexican exports not covered by the USMCA is subject to a 25% tariff, down from an earlier rate of 30%, during a 90-day negotiating period that began last week. The outlook for businesses Surveys of factory managers offer monthly insights into export orders, hiring and other indicators of how businesses are faring. The latest figures in the United States and globally mostly showed conditions deteriorating. In Japan, factory output contracted in July, purchasing activity fell and hiring slowed, according to the S&P Global Manufacturing PMI. But the data were collected before Trump announced a trade deal that cut tariffs on Japanese exports to 15% from 25%. Similar surveys show a deterioration in manufacturing conditions worldwide, as a boost from 'front loading' export orders to beat higher tariffs faded, S&P Global said. Similar measures for service industries have remained stronger, reflecting more domestic business activity. In Asia, that includes a rebound in tourism across the region. Corporate bottom lines are also taking a hit. Honda Motor said Wednesday that it estimates the cost from higher tariffs at about $3 billion. On top that, the U.S. economy — Trump's trump card as the world's biggest market — is starting to show pain from months of tariff threats. ___
Globe and Mail
6 minutes ago
- Globe and Mail
Imagen Network Builds Adaptive Content Filters Using Grok to Boost Engagement Quality
Imagen integrates Grok intelligence to deliver more responsive feed moderation in decentralized apps. Singapore, Singapore--(Newsfile Corp. - August 7, 2025) - Imagen Network (IMAGE), the decentralized AI-powered social platform, has introduced a new suite of adaptive content filters designed to improve engagement quality across its Web3 environments. This development leverages Grok's intelligent infrastructure to identify context and tone in real-time, providing more precise feed moderation without compromising transparency. Advanced AI tools designed for smarter decentralized social interactions. To view an enhanced version of this graphic, please visit: The new filters support dynamic adjustments based on behavioral feedback and allow communities to retain autonomy while benefiting from advanced moderation. Grok's capabilities are embedded to optimize how user content is evaluated and organized, adapting to conversational shifts and sentiment trends as they occur. This initiative reinforces Imagen's commitment to empowering user-led spaces with scalable AI systems. This upgrade follows Imagen's broader roadmap to streamline on-chain user experiences and enhance social authenticity. By combining Grok's real-time reasoning with decentralized control, the platform strengthens its position as the standard for intelligent, creator-led social networks. About Imagen Network Imagen Network is a decentralized AI platform focused on building user-led social applications that combine personalization, transparency, and smart interaction systems. It enables peer engagement through intelligent tools and adaptive AI systems for the Web3 generation. Media Contact Dorothy Marley KaJ Labs +1 707-622-6168 media@ Social Media Twitter Instagram
CBC
23 minutes ago
- CBC
Developer and housing researcher debate foreign investment in B.C. real estate
Retired UBC geographer David Ley is one of the 27 signatories of a letter sent to the prime minister taking a stance against foreign investment in housing in B.C. On the other hand, Cressey Development Group is a signatory of an open letter asking for restrictions on foreign investment to be lifted. Ley and Cressey's executive vice-president Hani Lammam join us on On The Coast to debate which approach is better.
