South Korea’s L&F Co., a battery materials supplier tied to Tesla’s $TSLA ( ▼ 3.27% ) Cybertruck, has effectively erased a deal once worth nearly $3 billion. According to Bloomberg, the company slashed the value of its Tesla supply contract by more than 99 percent, a fresh signal that Cybertruck demand has fallen far short of expectations.
From billions to pocket change
L&F disclosed that a contract announced in early 2023 and valued at about $2.7 billion has now been reduced to roughly $7,000. The company cited changes in supply quantities as the reason, with the high nickel cathode material originally intended for Cybertruck batteries barely being shipped at all.
The material was supposed to be supplied between early 2024 and the end of this year. Instead, deliveries dwindled as Cybertruck production timelines slipped and buyers gravitated toward Tesla’s more established models like the Model 3 and Model Y.
Another crack in the Cybertruck story
The write down adds to mounting evidence that the Cybertruck has struggled to gain traction. Development delays, higher prices, and the loss of certain EV subsidies have all weighed on demand, leaving suppliers exposed to sharply lower volumes than initially promised.
L&F said the revision was unavoidable given shifts in the global EV market and battery supply conditions, stressing that its flagship products continue to ship normally to other customers.
For Tesla, the move underscores a broader issue. The Cybertruck was pitched as a halo product, but the ripple effects of weaker sales are now showing up well beyond Tesla’s own balance sheet.