Tesla Supplier CATL Sees Shares Drop After Earnings Loss
Contemporary Amperex Technology Co. (CATL), one of the world’s largest manufacturers of batteries for electric vehicles (EVs), saw shares plunge after posting its quarterly earnings.
CATL shares dropped off by 10.8 percent on Thursday after reporting its largest drop in quarterly earnings yet, according to Bloomberg.
CATL’s net income dropped 24 percent to 1.49 billion yuan ($225 million) for the three months ending March 31. Underlying profits dropped a whopping 41 percent to 977 million yuan ($146.7 million), as the company deals with higher input costs.
Year-to-date, CATL’s shares are down about 38 percent, though it still commands the world market with about 35 percent of the global market share for EV batteries.
CATL’s New Facility Already Supplying Batteries to Tesla’s Shanghai Factory https://t.co/UqF2LA7bie
— TeslaNorth.com (@RealTeslaNorth) January 7, 2022
CATL gained approval last month to build a factory in Germany near Tesla’s Gigafactory Berlin as part of a 1.8 billion euro ($2 billion USD) investment.
The EV battery giant also announced it’s considering a $5 billion CATL plant in North America and is already looking at sites for the facility.
Ford is also discussing the possibility of a Canadian CATL plant to supply the automaker’s Oakville facility in Ontario.
CATL also plans to launch a battery swap platform in China, not unlike NIO’s battery swap stations.
Reports last year also held that CATL may be in talks with Apple over EV batteries, though it’s not clear if a deal arrived for the secretive Apple Car project or not.