Tesla’s 4680 battery supply chain collapses as partner writes down deal by 99% (electrek.co)

Article summary

Tesla's 4680 battery supply chain has been severely impacted as partner L&F Co. has written down the value of their supply deal by 99%, from $2.9 billion to $7,386. This suggests a significant drop in demand for Tesla's in-house battery cells, primarily used in the Cybertruck. The Cybertruck has been struggling with demand issues, and Tesla has been offering discounts and incentives to move inventory. The reduced demand for 4680 cells may indicate that Tesla is not ramping up production as expected.

Main themes

• Tesla's 4680 battery supply chain
• Cybertruck demand issues
• Electric vehicle market
• Battery production
• Tesla's financials
• Automotive industry trends

What commenters say

• Tesla's stock price is not reflective of the company's struggling sales and production, and is instead driven by speculation and investor expectations.
• The company's valuation is comparable to a Ponzi scheme, with new investors propping up the stock price despite lackluster fundamentals.
• Tesla's focus on future products and technologies, such as AI and robotics, is not justified by current revenue and profit, and is instead a way to hype up the stock price.
• The electric vehicle market is not as competitive in the US as it is in other countries, with companies like BYD offering high-quality, affordable options that could disrupt the market if they were available in the US.
• US manufacturers are unable to produce affordable, high-quality cars, and are instead prioritizing profit margins over competitiveness.
• Tesla's products, including the Cybertruck, are not living up to expectations, with poor handling and quality issues.
• The company's financials are strong, with high revenue and profitability, but this may not be sustainable in the long term if demand for their products continues to decline.
• The automotive industry is experiencing a shift towards electric vehicles, but Tesla's position in the market is not as secure as it once was, with other companies like BYD and Rivian gaining ground.