Shares of Tesla (NASDAQ: TSLA) climbed higher on Monday. The electric vehicle (EV) maker's stock gained 3% as of market close, but had jumped as much as 4.6% earlier in the day. The spike comes as the S&P 500 (SNPINDEX: ^GSPC) was flat and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 0.3%.

Tesla faces declining sales, contracting margins, and brand damage, with increased competition eroding its market share in Europe and California.

What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) jumped 4% in the afternoon session after the company announced a significant, multi-billion dollar contract with Samsung Electronics to produce its next-generation AI chips.