On Tuesday, shares of South Korean battery material manufacturer L&F took a nosedive, plunging 11%. This came in the wake of a substantial downsizing of its supply deal with American electric vehicle giant Tesla. Based on regulatory disclosures, the worth of L&F's orders from Tesla has seen a staggering decline. Initially, in 2023, the contract was valued at a hefty $2.91 billion, but it has now dwindled to a mere $7,386. Originally, L&F had laid out plans to supply Tesla with high-nickel cathode materials, which were to be used in the production of Cybertruck batteries. The supply period was set to span from January 2024 to December 2025. However, a confluence of factors conspired to derail these plans. Delays in the Cybertruck's development process, a shift in consumer tastes and preferences, and the cancellation of subsidies under the U.S. Inflation Reduction Act all contributed to a situation where the actual volume of deliveries was abysmally low. Consequently, this led to a massive slashing of the contract's value.