(Bloomberg) -- Asian electric vehicle-related stocks jumped on Tuesday after a blockbuster order for Tesla Inc. and a spinoff at BYD Co. stoked optimism about the sector.
Chinese EV maker BYD rose as much as 7.2% in Hong Kong to a record after saying the local bourse approved its plans to spin off a semiconductor unit, while Tesla supplier Contemporary Amperex Technology Co. climbed as much as 4.5% before giving up its advance.
Most Asian stocks tied to the EV supply chain such as China’s Tianqi Lithium Corp., Japan’s Panasonic Corp., South Korea’s LG Chem Ltd. and Taiwan’s Hota Industrial Manufacturing Co. also gained.
The rally followed sector bellwether Tesla’s 13% surge overnight after Hertz Global Holdings Inc. placed an order to buy 100,000 Teslas, the single-largest purchase ever for EVs. The move also sent the carmaker’s market above $1 trillion for the first time. The order shows countries and corporations are rapidly vaulting electric vehicles further into the mainstream amid the fight against global warming.
The Tesla order has “triggered investment sentiment for other EV stocks,” as the fourth quarter is normally the peak season for sales in the sector, said Toliver Ma, an analyst at Guotai Junan Securities Co. “EV stocks have a lot of positives at the moment.”
CATL is set to report earnings on Wednesday.
| EVs going mainstream |
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| Tesla-Hertz Blockbuster Deal Paves Way to Take EVs Mainstream |
| Hertz Order for 100,000 EVs Sends Tesla Value to $1 Trillion |
| Tesla Touches Trillion-Dollar Mark as EVs Go Mainstream |
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