Chinese investors cheer Tesla’s AI chip progress, pushing up shares of local suppliers
Shanghai Beite Technology saw the largest share spike among suppliers, up as much as 4.6 per cent on Thursday morning
Chinese suppliers of parts for Tesla’s electric vehicles (EVs) and robots saw their stock prices gain on Thursday morning as the US tech giant announced that its AI5 artificial intelligence inference chip was 45 days ahead of schedule.
After a nearly 7.7 per cent jump in Tesla’s Nasdaq-listed stock on Wednesday, shares of the company’s Chinese suppliers were up by as much as 4.6 per cent on Thursday.
Shanghai-listed Ningbo Tuopu Group and Shenzhen-listed Zhejiang Sanhua Intelligent Controls, which both announced their relationship with the US firm back in 2016, saw their shares rise as much as 4.3 per cent and 3.4 per cent, respectively.
They closed up 3.5 per cent and 1.5 per cent, respectively, on Thursday. Sanhua’s Hong Kong-listed shares rose 1.9 per cent.
Both firms are believed to be seeking to expand their partnership with Tesla, from supplying EV parts to robotics components. In 2024, they announced separate plans worth billions of yuan each to invest in robotics production, although they did not name any customer.
Shanghai Beite Technology saw the largest share spike among suppliers, up as much as 4.6 per cent on Thursday, before closing up 2.8 per cent. The company produces shock absorber rods for the Tesla Model 3 through a tier-1 supplier to the US EV giant.