July 3, 2022

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Shares of the Chinese electric car maker BYD rise after the executive company announced the Tesla battery deal

Shares of the Chinese electric car maker BYD rise after the executive company announced the Tesla battery deal

This December 2019 photo shows robotic arms spraying on the car body wrap at the BYD Automobile Company Limited Xi’an factory. BYD is set to supply Tesla with batteries “very soon,” a senior company executive told a Chinese broadcaster.

Yuan Jingzhi | China Optical Group | Getty Images

Shares in the electric car industry BYD It jumped in trade Wednesday morning after a senior executive said during an interview with Chinese state media that the company was ready to supply the batteries. Tesla “very soon.”

“Now we are good friends too Elon MuskBecause we are preparing to supply batteries [Tesla] “Very soon,” BYD Vice President Lian Yubo said during an interview with Chinese state broadcaster Kit Kui.

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

Hong Kong-listed BYD shares jumped 2.65%, reflecting the broader positive sentiment in technology with Hang Seng Tech advancing 2.84%. Shares of other Chinese electric car makers in Hong Kong also rose, at a rate New It rose by 4.68% while Exping It rose 5.32%.

However, mainland-listed shares of the Chinese battery maker and supplier Contemporary Amperex Technology, tumbled more than 6% after the comments. CATL captured nearly 25% of the global electric car battery market share in 2020, well ahead of BYD at 7%, according to Nomura research.

Elsewhere in Asia, shares Panasonic In Japan it is down by 0.8% while in South Korea LG Energy Solution is down 1.39%. Both companies also supply batteries to Tesla.

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CNBC’s Evelyn Cheng contributed to this report.