From $2.9 Billion to $7,386: How Tesla's Cybertruck Stumble Evaporated a Korean Family's Fortune
SEOUL & PALO ALTO — In the high-stakes world of electric vehicle supply chains, fortunes can be made and unmade on the shifting timelines of a single automaker. For the Hur family of South Korea, founders of battery materials firm L&F Co., a $2.9 billion supply agreement with Tesla Inc. in early 2023 promised a transformative future. Their stake in the company briefly catapulted them onto the Bloomberg Billionaires Index, with a paper fortune exceeding $800 million.
That future quietly dissolved in a December regulatory filing. L&F disclosed the projected value of its Tesla contract had been revised to a mere $7,386—a 99.9997% collapse. The filing cited only a "change in supply quantity," but the story behind the numbers points to Tesla's much-publicized challenges in scaling production of its advanced 4680 battery cells, a key component for the delayed Cybertruck.
"This wasn't just a contract revision; it was an erasure," said Michael Chen, a senior analyst at Greenstreet Advisors in Hong Kong. "It highlights the extreme concentration risk suppliers face when betting big on a single, volatile OEM. Tesla's ambitions for the 4680 cell and Cybertruck were clear, but the execution risk was entirely borne by partners like L&F."
The deal was initially a coup for L&F, a manufacturer of high-nickel cathode materials. It was seen as a direct path to diversify away from its primary customer, LG Energy Solution, and validate its technology on the global stage. Tesla's order was to cover planned deliveries through 2025, sending L&F's shares soaring on the Korean Exchange.
However, as Tesla grappled with manufacturing yields for the 4680 cells and Cybertruck deliveries lagged, the anticipated volume for L&F's materials evaporated. "Weak demand and low manufacturing yields likely slashed Tesla's order volume to near zero," a Samsung Securities analyst told Reuters. Consequently, the Hur family's listed holdings in L&F have plummeted to about $134 million, according to Bloomberg data.
"It's corporate malpractice wrapped in a regulatory footnote," fumed David Park, a retail investor who held L&F stock since 2022. "A deal goes from billions to the price of a used car, and investors are supposed to accept a one-line explanation? This exposes the fantasy-land valuations in the EV bubble. The Hur family got a brief taste of the top, but small shareholders are left holding the bag."
Despite the setback, L&F remains indirectly tied to Tesla through its ongoing major supply relationship with LG Energy Solution, which provides battery components for Tesla's high-volume models like the Model Y. Analysts note this revenue stream appears stable. Furthermore, the company has secured a future production contract with Rivian Automotive set for 2026 and supplies other automakers like Hyundai.
"The strategic blow is greater than the financial one," noted Sarah Lim, a partner at Seoul-based venture fund Katalyst Ventures. "The Tesla deal was a cornerstone of L&F's client diversification strategy. Its effective cancellation delays their timeline to reduce dependency on LG and leaves them more vulnerable to market shifts. It's a harsh lesson in the difference between a headline-grabbing MoU and realized, recurring revenue."
The episode serves as a stark reminder of the ripple effects of production delays in the auto industry, now amplified in the capital-intensive EV sector. What was once a $2.9 billion promise that positioned L&F as a rising global force now exists as a cautionary tale—and a $7,386 line item in a filing.
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