On October 21, CATL (300750.SZ; 03750.HK) saw its A-shares fall more than 12%, hitting a new low since June 2025 and retreating over 50% from its historical high on May 7, while its H-shares dropped more than 11%.

On October 20, CATL's A-shares closed down 2.97% and its H-shares closed down 6.58%. Since October 16, the company's stock price had been declining continuously, falling from 281.79 yuan per share to the current 227.9 yuan per share, a cumulative drop of 19.12%, with total market value evaporating by approximately 249.3 billion yuan.

On the news front, JPMorgan downgraded CATL's H-share rating to "neutral," cut its target price from HK$725 to HK$500, and lowered its earnings forecasts. JPMorgan stated that it is increasingly concerned that industry profitability is deteriorating faster than expected, and that profits across the electric vehicle supply chain are undergoing a broader redistribution. Battery consumption taxes, reduced export tax rebates, and rising trade barriers are coming one after another, and automakers' profitability is already under pressure. The bank noted that CATL may be the first to be impacted, but could ultimately emerge as a bigger winner, because whether it passes on cost pressures or absorbs some of the burden itself, the end result could be stronger customer stickiness.

On October 20, CATL held an earnings briefing to address changes in unit profitability in the third quarter, the reasons for the quarter-on-quarter increase in inventory and the inventory structure, the reasons for the decline in operating cash flow in the third quarter and future trends, as well as growth expectations for the global new energy industry in the coming years. CATL stated that industry demand in 2027 can still be anticipated, and the outlook may not be as pessimistic as the market expects, with still good growth potential.