$2.9 Billion Tesla Battery Provide Contract Loses 99% Of Worth In Revision

Elon Musk promised for years that Tesla would produce a $25,000 electrical automotive to make EVs accessible for the lots. Nonetheless, the ultimate nail may need been lastly hammered into that promise’s coffin. Battery materials provider L&F introduced on Monday that the worth of its high-nickel cathode provide take care of Tesla was minimize by 99%. The $2.9 billion contract signed in 2023 is now solely price $7,386, Electrek reviews.

The L&F-supplied supplies have been meant to drastically enhance manufacturing of Tesla’s 4680 battery cells. Nonetheless, the electrical automaker not wants a torrent of cells for its meeting strains as Cybertruck demand has fallen properly in need of Tesla’s expectations and the corporate additionally scrapped plans for its inexpensive mass-market mannequin. Musk claimed Tesla would construct 250,000 Cybertrucks per yr, however solely bought round 16,000 pickups by means of the primary three quarters of 2025. With the Cybertruck being the main vacation spot for 4680 cells, the parts have been not in excessive demand as 1000’s of unsold vans sat in tons.

The 4680 battery cells have been additionally a key part of Tesla’s rumored $25,000 Mannequin 2. The “Holy Grail” EV was abruptly canceled by Musk final yr in favor of growing a devoted Robotaxi. The CEO tried to say to buyers that the undertaking was nonetheless alive and {that a} Reuters report contradicting him was a lie, regardless of accounts from Tesla workers and suppliers. Months later, there’s not even a whisper in regards to the Mannequin 2, and the Robotaxi has launched as a half-baked driverless taxi service with people behind the wheel as “security screens.”

With the provision of 4680 battery cells being decreased to a trickle, what’s subsequent for Tesla? After shareholders authorised his trillion-dollar pay package deal in November, Musk claimed that the devoted Robotaxi can be getting into manufacturing subsequent April. Nonetheless, he additionally said that the corporate’s Optimus robots can be an “infinite cash glitch” throughout the identical shareholder assembly. These clankers cannot even hand out bottles of water proper now even with the assistance of a distant operator.