Why Tesla Stock Dipped on Monday

Core Insights - Tesla's stock price fell by 3.3% on the last trading day of 2025 due to news of a significant reduction in supply from a key supplier, L&F [1] - L&F's regulatory filing revealed that the value of the deal for high-nickel cathode materials has decreased to $7,386 million from a previous estimate of $2.9 billion [2] - The supply agreement between Tesla and L&F was originally signed in 2023, covering the period from January 2024 to December 2025 [3] Company and Industry Analysis - L&F did not provide reasons for the drastic cut in the deal's value, which is critical for Tesla's 4680 battery cells, aimed at enabling the production of a $25,000 EV [4] - The 4680 battery is also utilized in Tesla's Cybertruck, which has faced disappointing sales despite CEO Elon Musk's optimism [5] - The reduction in the supply deal value signals potential challenges for Tesla amid slowing growth in the overall EV market [5]