/ December 29, 2025 Tesla’s stock faced significant selling pressure on Monday, declining approximately 4.5% to trade near $470 by 16:05 CET. The downturn was fueled by a confluence of negative developments, including the effective cancellation of a major battery supply agreement, widening competitive threats from Chinese rival BYD, and mounting concerns over potentially weak fourth-quarter delivery figures. A Broken Contract and Shifting Market Leadership The most immediate catalyst for the sell-off was news from South Korean supplier L&F Co. The company revealed that a $2.9 billion contract to supply high-nickel cathode material—intended for the Cybertruck—had been slashed to a mere $7,400, representing a reduction of over 99%. This drastic cut signals significant production delays or a lack of demand, casting doubt on the rollout of Tesla’s newer vehicle models. Concurrently, the latest sales data confirms a shift in the global electric vehicle landscape that has been building for months. Chinese automaker BYD has now overtaken Tesla, having sold 2.07 million battery-electric vehicles through the end of November 2025. For the full year, Tesla is projected to deliver only about 1.65 million units, marking a 7.7% decrease from the prior year. Q4 Delivery Fears and a Fading Incentive The situation is further complicated by the expiration of a key U.S. government incentive. Following the removal of the $7,500 federal tax credit in September 2025, many buyers pulled their purchases forward into the third quarter. Consequently, the final quarter of the year is expected to show notable weakness. Market analysts now anticipate Q4 deliveries in a range between 405,000 and 449,000 vehicles. A disappointing result would underscore persistent challenges in Tesla’s core automotive business.