A South Korean family's fortune, tied to a $2.9 billion battery deal with Tesla, has virtually vanished. The contract, inked in 2023 with L&F Co., a cathode material manufacturer, was expected to dramatically increase the company's value. The deal propelled the Hur family's stake to over $800 million on paper, before quickly unraveling due to Cybertruck delays.

At the end of December, the projected contract value was revised down to a mere $7,386, a 99.9997% decrease. This revision stems from Tesla's struggles in scaling up production of its 4680 battery cells, primarily used in the Cybertruck. Weak demand and low manufacturing yields likely slashed Tesla's order volume, nullifying L&F's projected revenue and impacting the Hur family's wealth.

L&F's stock has plummeted, losing over 70% of its value. While the company still indirectly supplies Tesla through LG Energy Solution, the collapse of the direct deal with Tesla has severely impacted its diversification plans. L&F had aimed to reduce its reliance on LG, but this is now uncertain.

Despite the setback, L&F has secured a contract with Rivian Automotive and supplies to SK On. However, the initial promise of the Tesla deal, which briefly made the Hur family ultra-wealthy, now stands as a stark reminder of the risks tied to the volatile EV market and the challenges of scaling new technologies like the 4680 battery format.