CATL fell a "big fall" during the trading session, and once fell by more than 7%, causing the entire market to collapse. BYD is in a strong trend, not only approaching a record high, but also its market value is only one step away from "King Ning".

The protagonist of today's market is undoubtedly the two leading players in new energy vehicles: CATL and BYD .

CATL fell a "big fall" during the trading session, and once fell by more than 7%, causing the entire market . BYD is in a strong trend, not only approaching a record high, but also its market value is only one step away from "King Ning". After the trading session of

, BYD even issued an announcement, announcing that it would adjust the upper limit of the repurchase price from no more than 300 yuan per share to no more than 400 yuan per share, further demonstrating the company's confidence in future stock prices.

On one side, the former king is full of fatigue, and on the other side, the "10,000-year-old second" accumulates strength.

This lithium battery battle will surely continue. Who will win by CATL or BYD?

is only one limit away from "Ningwang"!

Half a year ago, on December 3, 2021, CATL hit a historical high of 692 yuan per share, with a market value of 1,613 billion yuan. On the same day, BYD's market value was 893.3 billion yuan, only 55% of CATL's.

At that time, if someone told you that BYD's market value may surpass CATL, you will definitely feel crazy.

However, six months later, CATL fell nearly 7% in the afternoon, causing the market to collapse, and its market value returned to below 100 billion. BYD, however, remained in a hot market, with a market value of nearly 920 billion yuan, only one limit up from CATL.

Although CATL staged a V-shaped reversal under the fund protection in the afternoon and turned strong at the close of the market, BYD also rose nearly 4%, and the market value of the two is still only 12%.

From a longer period of time, BYD has risen 41.24% since the market rebounded on April 27, close to the all-time high.

CATL rose only 22.02% during the same period, still falling by more than 30% from the historical high.

Why is ice and fire two different heavens?

is the two leading new energy vehicles, so why is it showing such a trend of ice and fire?

A direct reason is that BYD Group executive vice president and director of Automotive Engineering Research Institute Lian Yubo recently revealed when he was a guest on China Global TV Network that BYD will soon supply battery products for Tesla and claims to be good friends with Musk.

This is not the first time BYD has been rumored to supply Tesla, but the vice president personally responded, which is almost the same as the official announcement. Previously, Tesla has always been CATL's largest customer, accounting for as much as 10%. Nowadays, the biggest customer has been poached by the biggest competitor, and the decline is not difficult to understand.

Another reason is that CATL's huge private placement of 45 billion yuan was approved at the end of April. Before the private placement is completed, the stock price may be suppressed.

In addition, there are rumors today that CATL's second-quarter performance was lower than previous expectations.

In fact, for "Ningwang", it is not the first time that the performance has plummeted. In the first quarter of this year, CATL's net profit fell by 23.62% year-on-year, shocking everyone. In contrast, BYD delivered a brilliant record of 240.59% year-on-year in the first quarter. Behind the huge difference in performance of

is the fundamental reason why CATL and BYD are both in the ice and fire.

CATL, because it is in the middle of the industrial chain, it has suffered from the price increase of upstream raw materials this year.

4 The epidemic in Shanghai in April hit CATL hard. Due to the impact of the epidemic, Tesla, the largest customer, only sold 1,512 vehicles in April, and was almost suspended in the first half of the year, causing the proportion of CATL's lithium iron phosphate to be installed to 34.29%, losing the throne.

It is BYD that surpassed CATL. Since BYD's batteries are mainly supplied, BYD's complete vehicle production bases are scattered across the country, BYD is less affected by the epidemic in Shanghai. In the end, BYD sold 106,000 cars against the trend in April, not only surpassing Tesla to top the global new energy vehicle sales champion, but also helping its lithium iron phosphate loading share surpass CATL, reaching 47.14%.

, with the integrated cost advantage, the continuous launch of pure electric and hybrid hot models, and the help of automobile consumption policies, BYD is expected to achieve an amazing result of 2 million vehicles throughout the year.

lithium battery dragon and tiger fight, who will win?

Two companies, one focuses on batteries and the other produces automobiles + batteries. Both parties can be said to be the most outstanding company in China in the new energy field, with market value of around one trillion yuan. It is not an exaggeration to say that it is a dragon and a tiger in the track.

But as the industry becomes more and more popular, the battle between dragons and tigers is becoming increasingly fierce. The supply of Tesla in

means that BYD has begun to have the ability to reach out to grab the cake with Ning Wang in the battery process. According to BYD's financial report, in 2021, BYD's Fudi Battery , the total installed capacity of new energy vehicle power batteries and energy storage batteries is about 37.921GWh. Calculated at the unit price of 0.7 yuan/Wh, the revenue of this part is about 26.545 billion yuan.

From the capacity planning , CATL and FUDi Battery are expected to have nominal production capacity of 800/600GWh in 2025, which is not much different. Especially in the lithium iron phosphate market, BYD and CATL are closer.

The whole vehicle end is BYD's stronger business component. From the perspective of vehicle sales, in addition to the global leader Tesla, BYD undoubtedly overwhelms other competitors in various ways.

Whether it is the general trend of the industry or the stimulus of policies, the fundamental reason why BYD has made a world of new energy vehicles depends on its own strength.

Chi Dongshu, Secretary-General of the China Passenger Car Association, once said that the main reason for BYD's sales to soar is its technological breakthrough. After BYD broke through the electric hybrid technology, it gained market recognition. Everyone believes that BYD's technology is currently in an excellent state.

At the same time, BYD's supply chain is relatively stable and can withstand some external risks.

There is another news today that brings warm air to BYD.

On June 8, Vice Minister of Commerce Wang Shouwen said he supported foreign consumers to purchase Chinese brand cars. This is undoubtedly a major benefit for BYD, which insists on taking the international route. In terms of

exports, BYD exports mostly target developed countries and first-class developing countries as the target market, and exported to overseas markets. The cheapest dolphins were sold at US$35,000 in Australia. A BYD Han EV with a domestic 280,000 yuan sold at more than 720,000 yuan in Brazil , and BYD Tang EV even sold at 630,000 yuan. BYD export sales exceeded four digits for the first time in April. Although it was not as good as Geely , the average transaction price of BYD export models was as high as more than 400,000 yuan, which was worth three Geely export cars.

There are media reports that BYD electric car will be exported to the United States in early June. The United States is the second largest automobile market in the world. In the streets and alleys of the United States, we can already see BYD new energy buses everywhere. In the future, we may see more BYD passenger cars in the United States.

and CATL is not so lucky.

First of all, a statement from EU gave Ning Wang a big slap.

It is reported that European Commission is currently evaluating a proposal from the European Chemicals Agency (ECHA) to help the EU achieve self-sufficiency of electric vehicle battery . The proposal lists lithium carbonate, lithium chloride and lithium hydroxide as materials that are harmful to human health. However, the proposal does not prohibit the import of lithium, but if legislation is made, it will increase the cost of processors, as stricter rules control processing, packaging and storage.

An European Commission official confirmed it was evaluating the proposal, but did not disclose more details. It is reported that the European Commission will hold a meeting from July 5 to 6 to discuss whether to list lithium and other materials as dangerous substances, and the final decision is expected to be made at the end of 2022 or early 2023.

Secondly, whether it is the high cost of the upstream and the continuous strong voice of the downstream, CATL, which is in the middle, has always been under great pressure.

Recently, in order to avoid excessive dependence on CATL, some new energy vehicle companies are also investing in some battery companies, which has a very adverse impact on CATL.

According to 21st Century Business Herald , in March this year, 19 auto companies including Wei Xiaoli, SAIC, GAC, Dongfeng Automobile increased their capital in battery companies Xinwangda . Among these auto companies, many of the main battery suppliers of the battery are CATL.

In addition to investment, many OEMs are also actively contacting multiple battery suppliers to develop second- and third-supply battery suppliers. For example, GAC Aion's main battery supplier has changed from CATL to AVIC lithium battery , and Xiaopeng Motors also included 1 Lithium Energy and AVIC lithium battery into the supplier database.

The battle between dragon and tiger, who can laugh to the end? We leave it to time.

This article is derived from the value line