Shares of China EV maker BYD jump after exec announces Tesla battery deal

This photograph from Dec. 2019 exhibits robotic arms spray portray a automobile physique shell on the BYD Automobile Company Limited Xi’an plant. BYD is ready to provide Tesla with batteries “very soon,” a senior firm govt advised a Chinese state media anchor.

Yuan Jingzhi | Visual China Group | Getty Images

Shares of electrical car maker BYD jumped on Wednesday after a senior govt stated throughout an interview with Chinese state media that the corporate is ready to provide batteries to Tesla “very soon.”

“We’re now good friends also with Elon Musk, because we’re preparing to supply batteries to [Tesla] very soon,” BYD Vice President Lian Yubo stated throughout an interview with Chinese state media anchor Kate Kui.

BYD and Tesla didn’t instantly reply to CNBC’s requests for remark.

Rechargeable batteries and photovoltaic (the conversion of mild from the solar to electrical energy) made up 7.29% of BYD’s income pool in 2021, dwarfed by the greater than 50% share taken up by vehicles and associated merchandise, in response to the corporate’s newest annual report.

Hong Kong-listed shares of BYD jumped 2.79% on Wednesday, mirroring broader optimistic sentiment in tech because the Hang Seng Tech index superior 4.76% to 4,818.36. Shares of different Chinese EV makers in Hong Kong additionally rose, with Nio up 5.07% whereas Xpeng surged 6.13%.

Mainland-listed shares of Chinese battery maker and Tesla provider Contemporary Amperex Technology (CATL) plunged greater than 7% throughout Wednesday buying and selling earlier than bouncing again to shut 0.218% larger. CATL had roughly 25% of world EV battery market share in 2020, far forward of BYD’s 7%, in response to Nomura analysis.

Elsewhere in Asia, shares of Panasonic in Japan dipped 0.78% whereas South Korea’s LG Energy Solution dropped 1.5%. Both corporations additionally provide batteries to Tesla.

— CNBC’s Evelyn Cheng contributed to this report.

Read extra about electrical automobiles from CNBC Pro


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