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Shares of Chinese electric vehicle maker BYD jump after executive announces Tesla battery deal

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

Yuan Jingzhi | Visual Group China | Getty Images

Shares of electric vehicle maker BYD jumped on Wednesday morning after a senior executive said in an interview with Chinese state media that the company was set to supply batteries to Tesla “very soon”.

“We are now also good friends with Elon Musk, as we prepare to supply batteries to [Tesla] very soon,” BYD Vice President Lian Yubo said in an interview with Chinese state media anchor Kate Kui.

Rechargeable batteries and photovoltaics (the conversion of sunlight into electricity) accounted for 7.29% of BYD’s revenue pool in 2021, eclipsed by the more than 50% share taken up by automobiles and related products, according to the company’s latest annual report.

Shares of Hong Kong-listed BYD jumped 2.65%, reflecting broader positive sentiment in tech as the Hang Seng Tech index rose 2.84%. Shares of other Chinese electric vehicle makers in Hong Kong also rose, with Nio up 4.68% while Xpeng jumped 5.32%.

Mainland-listed shares of Chinese battery maker and Tesla supplier Contemporary Amperex Technology, however, fell more than 6% following the comments. CATL held around 25% of the global electric vehicle battery market share in 2020, far ahead of BYD’s 7%, according to Nomura research.

Elsewhere in Asia, shares of Panasonic in Japan fell around 0.8% while LG Energy Solution in South Korea fell 1.39%. Both companies also supply batteries to Tesla.

– CNBC’s Evelyn Cheng contributed to this report.

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