Samsung officially becomes the leading camera provider for Tesla’s Cybertruck. The American manufacturer offers the services of the South Korean company for a staggering $436 million.
In November 2019, the CEO of Tesla created a surprise by unveiling the Cybertruck, an armoured and futuristic pickup capable of displaying a monster range of 800 km. Admittedly, the billionaire’s demonstration had somewhat turned into a fiasco, However, this did not discourage potential customers.
For good reason, the Cybertruck has already exceeded the million pre-orders. The Dual Motor model, which incorporates two electric motors as its name suggests, is the one that wins the most membership, with 48% of pre-orders. As you will have understood, the Cybertruck is currently on the path to success, and this new partnership should further ensure this.
On Monday, July 12, 2021, we learned that Tesla and Samsung signed a $436 million contract. The American manufacturer decided to trust the South Korean firm to develop the Cybertruck’s onboard cameras. For the record, the Tesla pickup will be equipped with more than a dozen cameras, used in particular for the Autopilot, the autonomous driving system of Tesla.
SAMSUNG STRENGTHENS ITS ELECTRIC VEHICLE BUSINESS WITH TESLA
In addition, these cameras will also serve as “rear-view mirrors” by providing a side and rear view to the driver, as the Cybertruck lacks conventional rear-view mirrors. “The rapid growth of electric vehicle markets will drive the growth of Samsung Electro-mechanics’ profits,” says Whang Go-un, an analysis for KB Securities. “Once the Chinese plant in Tianjin is operational, Samsung’s share of automotive revenues will increase to 20.9% in 2024, up from 7.6% this year,” he adds.
As the analyst points out, the stagnation of the mobile phone sector due to the pandemic had raised serious concerns about Samsung’s activities in the production of camera modules and multilayer ceramic capacitors (MLCC). Since January 29, 2021, Samsung Electronics Co has seen its shares down 16.4%. This contract with Tesla will allow the South Korean giant to diversify and revive its activities in the electric vehicle market, while waiting for a revival of the mobile phone industry.