CATL shares drop on Q3 miss and Chinese EV market slowdown
CATL missed third-quarter revenue and profit expectations as its market share in China declined and the domestic EV market slowed. Analysts remain bullish on the stock's valuation despite the competitive pressure from rivals like BYD.
CATL, the Chinese battery leader, saw its market share in China fall from 49.8% in January to 40.9% in September, while BYD increased its share from 17.4% to 21.1%. The company missed third-quarter revenue and profit expectations due to intensified competition and a slowdown in the Chinese EV market, which saw its 12th consecutive monthly decline in September. CATL's stock has corrected from an all-time high reached in May 2026. The company currently has a forward price-to-earnings ratio of 10.6 and a market capitalization of approximately $150 billion. Analysts see 82% upside potential, with 44 rating it buy and two hold. CATL is a major investor in DeepSeek, participating in its recent $15 billion funding round, and operates a plant in Hungary to serve the European market. Bank of America suggests carbon dioxide futures may rise as coal becomes the cheapest energy source again, increasing demand for carbon certificates. While one perspective is skeptical of CATL due to competition, others note the stock's attractive valuation and European production capabilities as potential positives.