SPX3,831.39+6.06 0.16%
DIA309.71-1.14 -0.37%
IXIC11,322.24+194.39 1.75%

Tesla's Biggest Supplier Of Camera Modules Is No Longer LG But This South Korean Rival

South Korea’s Samsung Group subsidiary has secured a large order to supply camera modules to Tesla Inc (NASDAQ: TSLA) for its electric vehicles, Tesmanian

Benzinga · 06/09/2022 06:58

South Korea’s Samsung Group subsidiary has secured a large order to supply camera modules to Tesla Inc (NASDAQ:TSLA) for its electric vehicles, Tesmanian reported on Wednesday, citing the Korean Economic Daily.

What Happened: The multi-billion dollar deal will see Samsung subsidiary Samsung Electro-Mechanics Co supply camera modules version 4.0 with 5 million pixels.

The deal is estimated to be between $3.2 billion to $4 billion, the report said.

This is the largest contract for the Samsung subsidiary, a move that is expected to make the South Korean company the largest supplier of camera modules for Tesla.

Samsung will begin shipping its latest camera modules for Models S, 3, X and Y in the coming weeks. 

See Also: Tesla Rumored To Have Struck $400M Camera Deal With Samsung For Cybertruck

Samsung Vs LG: Until last year 70% of Tesla's camera modules were supplied by rival conglomerate LG Corp subsidiary LG Innotek, and the remaining 30% by Samsung, the report said. 

LG’s subsidiary LG Energy, which supplies batteries to Tesla, recently raised about $11 billion in South Korea’s biggest-ever public listing. LG trails China’s CATL in making batteries for electric vehicles. 

Price Action: Tesla closed 1.25% higher at $725.6 on Wednesday, according to data from Benzinga Pro.