Tesla Stock Drops 3.3% Amid Supply Concerns
Tesla (NASDAQ: TSLA) shares fell 3.3% on December 29, 2025, following news that South Korean supplier L&F would provide significantly fewer materials than expected. The value of the contract to supply high-nickel cathode materials for Tesla’s battery cells has been revised down to $7,386 from a previous estimate of $2.9 billion.
The supply deal, originally signed in 2023, was intended to last from January 2024 through December 2025. L&F did not disclose the cause for this drastic adjustment. The materials are crucial for Tesla’s 4680 battery cells, which are designed to enable the production of a less expensive electric vehicle priced around $25,000.
