Tesla In Talks To Source Camera Modules From Samsung Subsidiary

Tesla, Inc. TSLA, which uses camera vision for its self-driving technology, is in talks to buy camera modules from Samsung Electro-Mechanics, a subsidiary of South Korea's Samsung Electronics.

Responding to media reports of Samsung Electro-Mechanics supplying five trillion camera modules, the Korean company said it is currently negotiating the relevant details with Tesla. It also clarified that details such as the transaction size and amount can't be disclosed at this point in time.

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Last month, reports suggested that Tesla is looking to diversify away from LG Innotek, which was supplying about 70% of its camera modules. The reports also hinted at Samsung taking over the role of Tesla's lead camera module supplier by increasing its share from 30% to 80%.

Samsung's cameras will be installed in all of Tesla's vehicles, including the upcoming ones such as Cybertruck and the Tesla Semi. These cameras reportedly will have 5MP sensors, capable of producing five times clearer images than the previous generation.

Price Action: Tesla closed Thursday's session at $733.63, up 5.53%, according to Benzinga Pro data.

Photo via Jonathan Weiss on Shutterstock