Elon Musk dropped the name of a potential Tesla partner last night

After a series of recent high-profile deals for Intel, could a deal with Tesla be next?

The question became inevitable after Tesla ( TSLA ) CEO Elon Musk told investors at the electric car maker’s shareholder meeting yesterday that the company, which has increasingly shifted its focus to artificial intelligence and robotics, would need a “mega” semiconductor manufacturing factory to support its AI ambitions and that he was considering working with Intel ( INTC ) to make new chips.

For Intel, a deal with Tesla would represent another big step in its turnaround plan, especially if it comes with commitments to its foundry manufacturing business, which has so far struggled to attract new customers. The chipmaker has also reportedly requested business from Apple (AAPL).

Intel shares rose in early trading Friday on the news before paring those gains. (Read our daily coverage of the markets here.) Little has changed recently, while Tesla shares are down about 4%. Intel declined to respond Investopedia Questions about Musk’s statement, while Tesla did not respond in time for publication.

The move could also buy some political goodwill for Tesla after the public spat between Elon Musk and President Donald Trump earlier this year. Some analysts suggest that companies may view deals with Intel as opportunities to make inroads with the Trump administration.

Intel shares have risen more than 85% in 2025 so far, much of that rise following a series of deals over the past few months — including a partnership with AI chip leader Nvidia (NVDA), after Trump brokered a deal giving the US government a 10% stake in the chipmaker in August.

Many analysts have noted that those deals do not come with foundry commitments yet, leading most to maintain neutral or bearish ratings. One analyst with current ratings compiled by Visible Alpha does not recommend buying the stock.