Dec. 30, 2025 11:25 pm EST Jonathan Weiss/Shutterstock Elon Musk promised for years that Tesla would produce a $25,000 electric car to make EVs accessible for the masses. However, the final nail might have been finally hammered into that promise's coffin. Battery material supplier L&F announced on Monday that the value of its high-nickel cathode supply deal with Tesla was cut by 99%. The $2.9 billion contract signed in 2023 is now only worth $7,386, Electrek reports. The L&F-supplied materials were intended to drastically increase production of Tesla's 4680 battery cells. However, the electric automaker no longer needs a torrent of cells for its assembly lines as Cybertruck demand has fallen well short of Tesla's expectations and the company also scrapped plans for its affordable mass-market model. Musk claimed Tesla would build 250,000 Cybertrucks per year, but only sold around 16,000 pickups through the first three quarters of 2025. With the Cybertruck being the leading destination for 4680 cells, the components were no longer in high demand as thousands of unsold trucks sat in lots. The Model 2 is dead, but there's a new promise in the pipeline Sjoerd Van Der Wal/Getty Images The 4680 battery cells were also a key component of Tesla's rumored $25,000 Model 2. The "Holy Grail" EV was abruptly canceled by Musk last year in favor of developing a dedicated Robotaxi. The CEO tried to claim to investors that the project was still alive and that a Reuters report contradicting him was a lie, despite accounts from Tesla employees and suppliers. Months later, there's not even a whisper about the Model 2, and the Robotaxi has launched as a half-baked driverless taxi service with humans behind the wheel as "safety monitors." With the supply of 4680 battery cells being reduced to a trickle, what's next for Tesla? After shareholders approved his trillion-dollar pay package in November, Musk claimed that the dedicated Robotaxi would be entering production next April. However, he also stated that the company's Optimus robots would be an "infinite money glitch" during the same shareholder meeting. Those clankers can't even hand out bottles of water right now even with the help of a remote operator. Enjoyed this read? Join our newsletter for the top auto news sent straight to your inbox, and add us as a preferred source on Google! Recommended