Why The Tesla Cybertruck Caused A $2 Billion Hit To This South Korean Company

The Tesla Cybertruck fallout spreads to its 4680 battery supply chain, but demand may not be the biggest factor.

Tesla Cybertruck

Photo by: Tesla

Rob Stumpf

By: Rob Stumpf

Dec 30, 2025 at 4:00pm ET

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A Tesla supplier has written down nearly 99% of its supply contract.
The contractor was originally meant to supply components for Tesla's 4680 battery.
It now comes to a close with just $6,800 in revenue—way less than the $2.9 billion projected in 2023.

Tesla expected the Cybertruck to sell like gangbusters. Things didn't work out exactly as planned, and, much like CEO Elon Musk warned that the EV could "flop" (but at least he likes it). And, at the end of the day, the only real monetary risk was to Tesla, right?

Well, not exactly. What many people forget about is that Tesla may have vertically integrated a lot of its product development, but even the most lean manufacturers still need upstream providers. One South Korean supplier is now feeling the heat after its contract with Tesla was slashed by nearly 99%.

Tesla Cybertruck with optional off-road lightbar

Photo by: Tesla

Battery material supplier L&F Co. is the latest casualty of the Cybertruck's short-lived fiasco. According to a report from Bloomberg, L&F revealed this week that a massive supply contract—originally valued at $2.9 billion when it was awarded nine months before the first Cybertruck was delivered—has been slashed by nearly 99%. The contract, which officially concludes on Dec. 31, ends with a symbolic $6,800 in revenue (at today's conversion rates) for L&F.

The material that L&F supplied to Tesla was a high-nickel cathode, reportedly intended for the holy grail 4680 cell that Tesla developed for use with new products like the Cybertruck.

Unfortunately, the 4680 program hasn't exactly gone smoothly. What was supposed to be both an engineering and manufacturing leap for Tesla sparked competition from other global battery suppliers. Meanwhile, Tesla's internal battery program struggled to gain traction—much like Cybertruck sales—and geopolitical tariff turmoil turned automotive suppliers upside down.

Now, it's important to point out that while Cybertruck demand may have contributed to L&F's contract write-down, it may not be the only factor. Bloomberg reports that L&F acknowledged that global EV supply trade changes in a statement:

The supply contract was also affected by broader policy and economic issues, including the elimination of Inflation Reduction Act subsidies, the person added. Tesla representatives didn’t immediately respond to an emailed request for comment.

L&F said in a statement that the revision was inevitable as schedules were adjusted in line with changes in the global electric vehicle market and battery supply conditions.

“There have been no changes to shipments or customer supply of the company’s flagship high-nickel product,” L&F said, adding that shipments to major Korean cell manufacturers are proceeding smoothly.

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The unfortunate losers in this scenario are L&F's investors, who were banking on the supplier contract being a huge win for the company. Instead of record returns, the company's stock is now trading down more than 11% this week and 64% down since the Tesla contract was announced in early 2023.

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For Tesla, this is barely a footnote. The Cybertruck still exists, still sells and still prints headlines. But suppliers should take their own cautionary notes, though: building a business around Tesla's vision may be bold, but it's also ruthlessly conditional. If anything gets in the way, including tariffs, the future could change at a moment's notice.

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