Elon Musk Denies A Report That Tesla Is Working With Samsung On Its New Cars

Is Samsung (SAMSUNG ELECTRONIC KRW5000 SSNLF) SDI working with Tesla Motors Inc TSLA to supply the company with batteries for the upcoming Model 3 vehicle? According to Reuters and its "source with direct knowledge of the matter," the answer is yes.

However, according to Tesla's CEO Elon Musk, the answer is no.

Reuters' Take

Reuters reported on Tuesday that Samsung SDI is "making progress" with its ongoing discussions to supply Tesla with batteries. It is known that Tesla is already working with Panasonic Corporation (ADR) PCRFY for its battery supply, but Musk's company is looking toward Samsung for additional supply if sales of its electric vehicle exceed expectations, according to the report.

The initial news report sent shares of Korean-listed Samsung SDI higher by more than 6 percent on Tuesday. However, the stock was lower by more than 8 percent on Wednesday after Musk shut down the speculation through Twitter. Shares of Tesla were trading higher by more than 2 percent late Wednesday morning.

The first of Musk's two Tweets said, "Would like to clarify that Tesla is working exclusively with Panasonic for Model 3 cells. News articles claiming otherwise are incorrect."

In a follow up Tweet minutes later, he added that the Model S and X cells "are also Panasonic."