Tesla TSLA stock advanced higher before Monday's stock market open after CEO Elon Musk confirmed late Sunday that the EV giant has signed a $16.5 billion, multiyear, deal with Samsung for AI chips. Musk claimed that the initial price tag on the deal is just the beginning.

Tesla CEO Elon Musk said the U.S. automaker had signed a US$16.5 billion deal to source chips from Samsung Electronics, a move expected to bolster the South Korean tech giant’s loss-making contract manufacturing business.

Investors knew electric vehicle (EV) sales have been slumping for Tesla ( TSLA -8.44%). The EV leader announced a 13.5% year-over-year drop in second-quarter deliveries on July 2. Yet the stock is tanking today after Tesla reported its full second-quarter financial update today.