Tesla Inc.’s efforts to lure Chinese customers is giving its suppliers a boost in the world’s biggest electric-vehicle market.
Shares of Changzhou Almaden Stock Co. surged to more than a two-year high on Monday, after it said in a filing to the Shenzhen stock exchange that it has supplied solar glass to the electric car manufacturer since 2019.
Appliances parts maker Zhejiang Sanhua Intelligent Controls Co., another Tesla supplier, saw its shares rise to the daily limit and a record high. Stocks of other suppliers including Ningbo Tuopu Group Co. and Ningbo Joyson Electronic Corp. also rose to near the daily limit or to multi-year highs during morning trading.
Shares linked to Tesla or lithium batteries were among the 10 biggest gainers Monday morning in the CSI 300 Index, as mainland benchmarks eschew declines elsewhere.
Deliveries of China-made Tesla Model 3’s to Chinese customers officially start Tuesday. The California-based company cut the starting price of its China-built Model 3 sedans by 9% on Friday and also reported a new record for quarterly global deliveries of 112,000 units in the final three months of 2019.
“The price cut will stimulate Tesla’s sales performance and boost earnings and investor sentiment for companies in its supply chain," CICC analysts including Wang Lei wrote in a note Monday.