Samsung Pens $436 Million Deal With Tesla For Cybertruck Cameras

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Samsung Electro-Mechanics — a division of Samsung Electronics Co Ltd (KRX:005930) — has signed a deal with Tesla Inc (NASDAQ:TSLA) to supply the camera modules for the Cybertruck to be released in late 2021.

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Entering the Automotive Business

Samsung will provide the cameras located in the interior and the side mirrors of Tesla’s flagship launch. The prototype of the electric pick-up did not have this element, so Tesla was looking to incorporate the system that would make his futuristic-looking truck safer for drivers.

Rumors point to the possibility of Samsung’s new PixCell LED headlight also being included in the Cybertruck and further upcoming products. This and the camera components will be manufactured at the company’s plant in Tianjin, China.

As reported by Forbes, Samsung is beginning to test the automotive sector to increase its business model, and the first major manufacturer with which it has managed to reach this agreement has been Tesla.

Further, the Korean giant announced Wednesday that it would fully move into the image sensor market, debuting its ISOCELL Auto 4AC sensor ––the first product of Samsung’s ISOCELL Auto brand, set up in 2018. The device is set to be used for view monitoring and backup cameras.

Tesla’s Ground-Breaking e-Pickup

In the meantime Elon Musk took to Twitter to say that his upcoming Cybertruck “will be almost exactly as shown at the 2019 launch,” but it would include a new feature: the Crab Mode.

“We’re going to add steering on the rear wheels, so you can make sharp turns and maneuver with great agility,” he said.

Tesla’s Crab Mode is the answer to General Motors Company (NYSE:GM)’s similar system with the same name. Recently introduced in its new electric GMC Hummer, the feature gives the car the possibility to drive diagonally at low speeds, thanks to an all-wheel-drive rotation.

Tesla’s feature is also reminiscent of the Rivian R1T’s “tank mode,” which sports an e-motor in every wheel that allows the vehicle to attack any terrain without trundling mechanical systems.

In January 2021, Elon Musk told Business Insider, “If we get lucky, we'll be able to do a few deliveries toward the end of this year, but I expect volume production to be in 2022.”

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders' families.