Shares in Chinese electric vehicle maker BYD jump after the executive announced Tesla’s battery deal

This photo from December 2019 shows robotic arms spray painting a car body at the BYD Automobile Company Limited plant in Xi’an. BYD is poised to supply Tesla batteries “very soon,” a senior executive at a company told a Chinese state media host.

Yuan Jingzhi | Visual China Group | Getty Images

Shares of the electric vehicle manufacturer BYD entered the business on Wednesday morning after a senior executive said in an interview with Chinese state media that the company is set to supply batteries Tesla “very early.”

“We are now also good friends Elon Muskbecause we are preparing to supply the batteries to [Tesla] very soon, “BYD Vice President Lian Yubo said during an interview with Chinese state media host Kate Kui.

Rechargeable batteries and photovoltaics (the conversion of light from the sun into electricity) made up 7.29% of BYD’s revenue pool in 2021, dwarfed by the more than 50% share occupied by automobiles and related products, according to the the company’s latest annual report.

Shares of Hong Kong-listed BYD were up 2.65%, mirroring broader positive sentiment in the tech sector as the Hang Seng Tech Index advanced 2.84%. Shares of other Chinese electric vehicle manufacturers in Hong Kong also rose, with no up by 4.68% while Xpeng rose 5.32%.

Mainland-listed shares of Chinese battery maker and supplier Tesla Contemporary Amperex Technology, however, plummeted more than 6% following comments. According to research by Nomura, CATL held about 25% of the global market share of electric vehicle batteries in 2020, far more than 7% of BYD.

Elsewhere in Asia, shares of panasonic in Japan it fell about 0.8% while South Korea’s LG Energy Solution fell 1.39%. Both companies also supply Tesla batteries.

– Evelyn Cheng of CNBC contributed to this report.

You may also like...