Seoul (Reuters) -Shares in Samsung Electronics ( SSNLF ) fell 1% on Tuesday after the South Korean technology company staged a powerful rally in the previous session on news of a $16.5 billion deal to supply chips to Tesla.

The deal could bolster the technology company's unprofitable contract business, but Samsung faces challenges in securing additional large customers, analysts said.

Tesla CEO Elon Musk said late on Sunday that Samsung's new chip factory in Taylor, Texas, would make the auto company's next-generation AI6 chip, without elaborating on the timing of the production.