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


The photo below is from December 2019. It shows robot arms spray-painting a car’s body at the BYD Automotive Company Limited Xi’an facility. According to an executive from BYD, Tesla will be supplied with its batteries “very soon” by the Chinese state media.

Getty Images| Visual China Group | Getty Images

Electric vehicle manufacturer shares BYDAfter a top executive stated in an interview with Chinese media, that his company will supply batteries to China, shares rose Wednesday morning. Tesla “very soon.”

“We are now friends with them.” Elon MuskWe’re in the process of supplying batteries. [Tesla]”very soon,” Lian Yubo (BYD Vice President) said in an interview with Kate Kui, Chinese media anchor.

According to BYD’s most recent annual report, rechargeable batteries and photovoltaic made up 7.29% of the revenue pool for 2021. This is dwarfed in comparison by more than half of the share held by related products such as automobiles.

BYD Hong Kong shares rose 2.65% to reflect broader positivity in tech, as the Hang Seng Tech index grew 2.84%. The shares of Chinese EV manufacturers in Hong Kong rose as well. NioUp to 4.68% XpengThe increase was 5.32%

Following the comments, shares listed on Mainland of Chinese supplier Contemporary Amperex Technology and Chinese battery manufacturer China Battery Technology fell more than 6 percent. Nomura research shows that CATL had 25% of the global EV-battery market in 2020. That’s far better than BYD, which was 7%.

In Asia, there are shares PanasonicJapan saw an average drop of 0.8% and South Korea, LG Energy Solution fell by 1.39%. They also supply batteries for Tesla.

— CNBC’s Evelyn Cheng contributed to this report.