One South Korean family saw their fortune swell past $800 million on paper — not from an IPO, not from real estate, not from crypto — but from a battery deal with Tesla. Less than two years later, the value of that contract was quietly revised down to just $7,386.
Yes, from $2.9 billion to $7,386. A 99.9997% collapse.
Behind the swing is L&F Co., a manufacturer of high-nickel cathode materials used in electric vehicle batteries. In February 2023 , the company signed a supply agreement with Tesla and its affiliates, covering planned deliveries through 2025. At the time, the deal was seen as a game changer — expanding L&F's client base and opening the door to direct business with one of the world's most powerful automakers.
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Investors rushed in. Shares soared. And the company's chairman and CEO, Hur Jae-hong, landed on the Bloomberg Billionaires Index alongside his family, their stake briefly worth more than $800 million .
A Billion-Dollar Deal That Never Showed Up
At the end of December, the dream came crashing down. In a regulatory filing submitted in South Korea, L&F disclosed that the projected contract value had been revised to $7,386, citing only a "change in supply quantity." No further explanation was given in the filing.
According to analysts quoted by Reuters , the drastic revision likely stems from Tesla's ongoing struggles to scale up production of its 4680 battery cells — an advanced battery format the automaker promoted heavily but has faced setbacks in producing at volume. These cells are primarily used in Tesla's Cybertruck, which faced multiple delays and slower-than-expected uptake after launch.
A senior analyst at Samsung Securities told Reuters that weak demand and low manufacturing yields likely slashed Tesla's order volume, effectively nullifying the revenue L&F had once projected.
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70% Stock Decline — and a Shattered Fortune
L&F's stock had already been in retreat. The company's shares fell more than 70% from their 2023 peak on the Korean Exchange, as enthusiasm around the EV market cooled and concerns mounted over L&F's reliance on a small number of major buyers. Tesla was expected to help offset that imbalance. Instead, the revised filing confirmed that one of its biggest breakout opportunities had all but vanished.
As a result, the Hur family's listed holdings in L&F — once worth over $800 million — have dropped to about $134 million, according to Bloomberg .
Still in the Tesla Ecosystem — Indirectly
Even with the contract collapsed, analysts say L&F is still in Tesla's orbit — just not directly. In a research note cited by Bloomberg, KB Securities analyst Changmin Lee said that about 80% of L&F's revenue still comes from its relationship with LG Energy Solution, which supplies Tesla with battery components for high-volume models like the Model Y.
Lee added that the indirect supply chain "appears to be progressing smoothly, regardless of yesterday's disclosure."
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But the Tesla deal had been about more than just near-term earnings . It was a pillar of L&F's plan to diversify away from LG. According to Bloomberg, the company had aimed to reduce LG's share of its sales to 50% by 2025, leveraging the Tesla partnership — along with a 2021 deal with battery recycling firm Redwood Materials, founded by ex-Tesla CTO JB Straubel — to build a broader client base.
That diversification timeline now looks much less certain.
What's Next for L&F
Despite the Tesla stumble, Bloomberg reported that L&F may still have runway. Citing Yuanta Securities Korea, the outlet said L&F is set to begin full-scale production for Rivian Automotive in 2026, following a contract secured in early 2025. It also supplies mid-nickel cathodes to SK On, which manufactures EV batteries used in Hyundai Motor Co. vehicles.
Still, the $2.9 billion Tesla promise that once made L&F look like a rising global force — and temporarily catapulted the Hur family to ultra-wealthy status — now exists as a footnote. Or, more precisely, as a $7,386 line item in a filing.
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This article Tesla Made A Little-Known Family Insanely Rich With a $2.9B Deal—Then Cybertruck Delays Wiped Out More Than 99.9% of It originally appeared on Benzinga.com
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