NEW YORK, December 29, 2025, 06:53 ET — Premarket
- Tesla shares fell about 2% in premarket trading after South Korea’s L&F sharply cut the stated value of a battery-material supply deal tied to Tesla.
- The move added to scrutiny over Tesla’s in-house 4680 battery ramp and demand for its Cybertruck, which uses the cells.
- U.S. stock index futures were slightly lower in thin year-end trade, keeping investors focused on this week’s Fed minutes and jobless-claims data.
Tesla shares slid in premarket trading on Monday after a key battery-material supplier disclosed a steep reduction in the projected value of a supply deal tied to the electric-vehicle maker. Tesla was down about 2.1% at $475.19. [1]
The disclosure matters because it points to softer near-term demand for materials used in Tesla’s newer battery design, at a time investors are looking for proof the company can lower costs and grow volumes in a cooling EV market. The cut also lands during a holiday-shortened week when thinner trading can amplify price swings. [2]
More broadly, U.S. stock index futures edged lower, with big tech and AI-related names also under pressure before the open. Investors have been watching for a “Santa Claus rally” — the tendency for the S&P 500 to rise in the final trading days of December and the first sessions of January — while looking ahead to Fed minutes and weekly jobless-claims data. [3]
L&F said the value of its 2023 supply deal with Tesla had shrunk to $7,386 from an earlier projection of $2.9 billion, without giving reasons for the change. The agreement covered supplies from January 2024 through December 2025, the company said. [4]
Sources and analysts told Reuters L&F had planned to supply high-nickel cathode materials for Tesla’s in-house “4680” battery cells. Cathode material is a key ingredient in the positively charged side of a lithium-ion battery. [5]
Cho Hyun-ryul, a senior analyst at Samsung Securities, said production-yield issues for Tesla’s 4680 batteries and a slowdown in EV-demand growth could have driven reduced orders from L&F. “There (is) anxiety about the battery sector overall,” Cho added. [6]
Neither Tesla nor L&F immediately responded to Reuters requests for comment. [7]
Tesla Chief Executive Elon Musk unveiled plans in 2020 to mass-produce the 4680, pitching it as a lower-cost cell that would help underpin a smaller, cheaper electric car. Analysts have said Tesla’s slower-than-hoped ramp for the battery has reduced near-term demand for some materials. [8]
Tesla currently uses 4680 cells in its Cybertruck, which Reuters described as slow-selling, and Musk has said scaling a “dry electrode” battery-manufacturing process is challenging. [9]
The L&F news also comes as parts of the battery and EV supply chain contend with weaker growth and shifting policy support. Reuters reported that some battery suppliers have cited order cancellations and scaled-down plans after the end of U.S. federal EV subsidies in September. [10]
Tesla’s pullback follows a recent run-up: the stock was lower on Monday after hitting a record high last week, Reuters reported. The company’s valuation has been supported in part by investor expectations around autonomy and new products, keeping sensitivity high to signs of execution risk. [11]
Investors will be watching this week’s Fed minutes and labor data for clues on rate expectations, alongside any fresh signals on EV demand into year-end. For Tesla, attention is also likely to turn to its next updates on battery production and quarterly performance as the calendar flips to January. [12]
References
1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.reuters.com
