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.
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.