Tesla supplier CATL (Contemporary Amperex Technology Co.) reported increased net income for the second quarter.
Bloomberg calculated that the Chinese battery supplier’s profit increased by 13.4% to $1.7 billion in the second quarter, beating analyst estimates. CATL’s net income rose 10.4% to 3.1 billion in the first half of the year.
CATL’s performance in Q2 2024 means it remains the number one battery supplier worldwide. As of May 2024, the China-based company held a market share of 37.5% globally. In China, CATL holds a 45% market share.
However, it wasn’t all good news for CATL in the second quarter. The company’s revenue fell 13.2% to $12 billion in Q2 2024. For the first half of the year, its performance saw a 12% drop to $1 billion.
Tesla China has partnered with CATL since the beginning of Giga Shanghai production. Tesla will likely continue to contribute significantly to the battery supplier’s success. In March, Morgan Stanley analyst Adam Jonas deemed Tesla and CATL the power couple that could recharge the United States electric vehicle market.
“In our view, this will require a degree of ‘westernization’ of Chinese tech to be palatable in the US given the rising protectionist sentiment (both in the US and Europe). At the same time, China is experiencing an over-supply in EV batteries and is seeking a conduit to offload (‘off-ramp’) supply via export opportunities,” Jonas commented in a note.
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