Tesla’s Cybertruck production plans have suffered a significant setback as South Korean battery materials supplier L&F Co announced a drastic reduction in its 4680 battery deal, slashing the contract value from $2.9 billion to just $7,386—representing a 99% decrease. The agreement was originally intended to supply materials for high-nickel cathodes for Tesla’s batteries from January 2024 through December 2025.
The reduction comes amid slowing EV demand, which has resulted in Tesla’s diminished need for such materials. Despite a production capacity of 250,000 units per year at Giga Texas, the Cybertruck is currently selling at an annual run rate of only 20,000 to 25,000 units. In September, Tesla ceased production of its lowest-priced Cybertruck variant due to low customer interest.
In the third quarter of 2025, Tesla reported revenues of $28.1 billion, an increase of 12% year-over-year, with 497,099 vehicle deliveries exceeding expectations. Model 3 and Y deliveries alone accounted for 481,166 vehicles, marking a 9% year-over-year increase.
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