Electric Vehicle giant Tesla has faced a significant setback as South Korean supplier L&F Co announced that its contract for 4680 battery materials has plummeted in value from $2.9 billion to just $7,386, a decline of nearly 99%. This deal, initially set to supply high-nickel cathode materials to Tesla from January 2024 to December 2025, is crucial for the development of Tesla’s 4680 battery cells, primarily used in the underperforming Cybertruck.
Despite a production capacity of 250,000 units annually at Giga Texas, Cybertruck sales are running at approximately 20,000 to 25,000 units a year. Tesla’s recent actions, including discontinuing its lowest-priced Cybertruck variant and using discount strategies to clear inventory, reflect a struggle with EV demand and production ramp-up. In Q3 2025, Tesla reported revenues of $28.1 billion, up 12% year over year, with a total vehicle delivery of 497,099 units, surpassing expectations.
