This year is panning out quite differently for China’s two electric vehicle kingpins: CATL and BYD.
BYD has seen its vehicle sales soar despite continued lockdowns in China, and has confirmed it will soon sell batteries to Tesla. CATL, however, has suffered due to investor concerns about falling margins because of its exposure to higher raw material prices.
Share prices for CATL have fallen by 11% this year, while BYD, by contrast, is up by 25%.
The performance highlights the benefits of vertical integration to automakers as well some of the downsides battery producers face as they struggle to . . .