William Blair analyst Jed Dorsheimer was all praise for Tesla Inc (NASDAQ: TSLA) $16.5 billion chip supply agreement with Samsung Electronics in an interview with CNBC today, but he won’t recommend buying the EV stock still.

Samsung's Taylor, Texas plant will begin producing the A16 chip for new Tesla vehicles and robotaxis in the years ahead.

The stock of Tesla (TSLA) is up 4% on July 28 after the electric vehicle maker announced that it has entered into a $16.5 billion contract with Samsung Electronics (SSNLF) to supply it with semiconductors.

Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 4% in the afternoon session after the company announced a significant, multi-billion dollar contract with Samsung Electronics to produce its next-generation AI chips.

The chairman of South Korea's Samsung Electronics Jay Y. Lee departed on Tuesday to Washington for a business trip, a company spokesperson said, a day after unveiling a $16.5 billion deal to supply chips made in Texas to Tesla.

Samsung Electronics, the world's top memory chip maker, has suffered delays in supplying the latest high-bandwidth memory (HBM) chips to key U.S. customer Nvidia, a setback that has dented its profits and weighed on its stock.

Shares of Samsung Electronics (KS:005930) fell about 1% on Tuesday, pausing after a strong rally sparked by news of a $16.5 billion chip supply deal with Tesla (NASDAQ:TSLA). The agreement positions Samsung as a

Tesla ( NASDAQ: TSLA) CEO Elon Musk on Sunday confirmed that the EV maker has signed a $16.5 billion semiconductor supply deal with Samsung Electronics ( OTCPK:SSNLF ), identifying Tesla as the unnamed party in a regulatory filing posted by the South Korean tech giant earlier.