"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 revenueway 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)."
"One South Korean supplier is now feeling the heat after its contract with Tesla was slashed by nearly 99%. 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 contractoriginally valued at $2.9 billion when it was awarded nine months before the first Cybertruck was deliveredhas been slashed by nearly 99%."
"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 tractionmuch like Cybertruck salesand geopolitical tariff turmoil turned automotive suppliers upside down."
L&F Co. reduced a supply contract with Tesla from $2.9 billion to a symbolic $6,800, representing a nearly 99% write-down as the contract concludes on Dec. 31. The agreement was awarded nine months before the first Cybertruck delivery and covered high-nickel cathode material intended for Tesla's 4680 cell. The 4680 program faced engineering and manufacturing challenges, spurred competition from global battery suppliers, and struggled alongside underwhelming Cybertruck demand. Geopolitical tariff turmoil and broader supplier disruptions compounded the situation. Cybertruck demand may have contributed to the write-down but is not necessarily the sole cause.
Read at insideevs.com
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