Elon Musk Podcast Tesla's $2.9 Billion Battery Deal Just Collapsed to $7,386
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Jan 3, 2026 A $2.9 billion battery deal with South Korean supplier L&F dramatically collapses to just $7,386. The promised revolution of Tesla's 4680 battery cells faces harsh realities, as production costs rise and demand for the Cybertruck trails expectations. The podcast delves into the ambitious claims made during Battery Day 2020 versus current setbacks. It also highlights broader implications for the battery market and EV economics, including a shift in subsidies and increased competition, raising questions about Tesla’s future strategies.
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4680 Promise Failed To Materialize
- Tesla's 4680 promise collapsed from a bold cost-cutting claim into unmet targets over five years.
- The cell that was to enable a $25,000 Tesla never delivered the projected production or cost savings.
Dry Electrode Scale-Up Stalled
- Tesla's dry electrode process proved much harder to scale than expected and blocked promised cost cuts.
- Musk admitted 4680 cells cost more to produce than supplier cells as of mid-2024.
LNF's $2.9B Deal Wiped Nearly Clean
- LNF signed a $2.9 billion contract with Tesla in early 2023 to supply cathode materials for 4680 cells.
- That contract was later written down to roughly $7,386, effectively canceling it.