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Tesla (TSLA) Stock Climbs as Its Biggest Battery Maker Crushes Estimates
Tesla (TSLA) stock climbed 1.2% to $403.25 in early Tuesday trading, lifted by a strong earnings report from its key battery supplier, Contemporary Amperex Technology Co. Ltd., known as CATL.
CATL, the world’s largest lithium-ion battery maker, reported Q4 net income of $3.3 billion on sales of $20.3 billion. Wall Street had expected $2.8 billion in profit and $18.8 billion in revenue. Both numbers came in ahead of estimates.
The beat matters for Tesla because CATL is one of its primary battery suppliers. Strong numbers from the supplier signal continued demand in the EV supply chain, which feeds directly into Tesla’s core business.
Battery capacity at CATL reached 772 gigawatt-hours in 2025, up 14% year-over-year, according to Citi analyst Jack Shang. The company also has 321 gigawatt-hours of new capacity currently under construction.
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