- A single order from Tesla has boosted a family’s fortune to over $800 million, according to Bloomberg.
- Cathode company L&F won a $2.9 billion order from Tesla this year, sending its stock soaring.
- That’s generated a large amount of wealth for the Jae-hong family, who owns stock in the battery-material firm.
A single order from Elon Musk’s Tesla has boosted a family’s fortune to hundreds of millions of dollars.
Shares in L&F, a South Korea-based cathode company, have skyrocketed 82% this year after it secured a $2.9 billion order from the U.S. carmaker. It’s meant the Jae-hong family, who owns stock in the battery-material firm, are now worth over $800 million, according to Bloomberg.
Tesla has been a long-time customer of L&F, purchasing the company’s cathodes for years through batteries provided by LG Energy Solution – but this is the first time Musk’s automaker has becomes a direct client, per the outlet.
Following the Tesla deal, L&F expects its dependence on LG Energy Solution will fall to 50% of revenue generated by 2025.
“The fact that its latest client is not any other but the one that’s leading the market carries even bigger significance,” a Meritz Securities analyst told Bloomberg.
Tesla’s dominance of the electric-vehicle industry has seen the company trigger a price war to boost demand for its vehicles – and analysts say it’s working. The carmaker recently reported record first-quarter deliveries, up 36% from a year earlier.
The EV maker’s stock has bounced about 73% to $187 a share so far this year, making it one of the best-performing companies on the tech-heavy Nasdaq Composite index.
Meanwhile, shares of companies that supply electric-vehicle components or materials have soared in recent years, and subsequently inflated the wealth of their owners. For example, Ryu Kwang-ji, the chairman of chemical company Kumyang Co, saw his stake in the firm balloon to $1.4 billion after the share price surged more than 1.600% in the past year, per Bloomberg.