CATL shares drop 10% in two days as outlook worries mount

Contemporary Amperex Technology suffered its steepest two‑day drop in almost a year as investors evaluated the Chinese battery giant’s third‑quarter outlook and speculation it may scale back production.

Shares of the world’s largest battery maker fell up to 5.5% Wednesday in Shenzhen, compounding Tuesday’s drop to bring total losses to about 10%. Market chatter about possible September output cuts and a potential reduction third-quarter unit net profit, along with concerns over rising competition from automakers’ supply diversification, weighed on the shares, traders said.

“There is weak sentiment in the battery sector on fiercer competition and a potential battery strategy shift by downstream EV producers such as Li Auto,” Kelvin Lau, executive director at Daiwa Capital Markets, said, noting the market speculation’s role in the two-day selloff.

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The latest rout extends a broader slide in CATL, whose shares have fallen around 35% from the all-time high reached in May, erasing over $100 billion in market value. Investors remain cautious as the company faces a domestic market hit by weakening auto demand, while overseas momentum is clouded by US and European geopolitical risks.

The company did not respond to Bloomberg’s request for comment.

Still, CATL has a robust shipment plan, with volumes likely to sequentially rise 20% in the third quarter and another 30% in the fourth, according to Lau.

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Leonid Mironov, portfolio manager at Gavekal Capital, said he remains long-term bullish on the company.

“Next quarter reporting should be an opportunity for the company to communicate that all is well or update the guidance,” he said.

Shares of CATL’s domestic competitors rose Wednesday, with Sunwoda Electronic Co up as much as 18% onshore and CALB Group Co. climbing 7.2% in Hong Kong.

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