A single order from Tesla has raised a family’s fortune to over $800 million, according to Bloomberg.
South Korean company L&F won a $2.9 billion order from Tesla this year, sending its shares soaring.
This has made a great fortune for the Jae-hong family, who own shares in the battery company.
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A single order from Elon Musk’s Tesla has raised a family’s fortune to hundreds of millions of dollars.
Shares of L&F, a South Korea-based cathode maker, have soared 82 percent this year after the company won a $2.9 billion order from the US automaker had received. Bloomberg Sea The fortune of the Jae-hong family, which owns shares in the battery company, is now worth over $800 million.
Tesla has been a long-time L&F customer, sourcing the company’s cathodes for years through batteries supplied by LG Energy Solution — but this is the first time Musk’s automaker has become a direct customer, the source reports.
After the Tesla deal, L&F expects its reliance on LG Energy Solution to drop to 50 percent of generated revenue by 2025.
“The fact that the newest customer is not someone else, but the one who leads the market is even more significant,” an analyst at Meritz Securities told Bloomberg.
Tesla’s dominance of the electric vehicle industry has led the company to launch a price war to spur demand for its vehicles — and analysts say it’s working. The automaker recently reported record deliveries for the first quarter, up 36 percent year-on-year.
The electric-car maker’s stock is up 73 percent year-to-date to $187 a share, making it one of the best-performing companies in the tech-heavy Nasdaq Composite Index.
At the same time, the shares of companies that supply components or materials for electric vehicles have soared in recent years, boosting the fortunes of their owners. Ryu Kwang-ji, chairman of chemical company Kumyang Co, increased his stake in the company to $1.4 billion after the share price rose more than 1,600 percent last year, according to Bloomberg reported.
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