Tesla stock has reported continuous growth these past few days, especially after the news that the Model 3 electric sedan’s price reached parity with the Toyota Camry.
In effect, the EV giant’s battery suppliers also enjoy notable share increases as investors recognize the Inflation Reduction Act’s positive impact on the entire industry.
Panasonic and LGES report shares growth
Teslarati reports that Japanese battery maker Panasonic reported a 45% year-to-date share increase. Likewise, the South Korean Tesla supplier LGES‘ shares grew 36% YTD. Remarkably, both companies are now surpassing their local records.
However, the report noted that not all of Tesla’s battery partners enjoy the same share increase. For instance, Chinese battery giant CATL reported a 4.5% YTD shares decline.
Experts insight
As per Bloomberg, citing Citigroup analyst Kota Ezawa, non-Chinese battery makers will most likely benefit from the US tax credits under the IRA, which primarily drives their stocks to increase. In contrast, Chinese battery suppliers are disadvantaged as the IRA aims to reduce US reliance on China.
EV-a2z recently reported that Tesla and Panasonic’s partnership gained approximately $1.8B in US tax credits in 2023.
In addition, industry analyst Christ Berry said that IRA credits might total $1 trillion in a Citi note, which is higher than the US Congressional Budget Office’s forecast of $369 billion over a ten-year period. Furthermore, Berry claimed at a Citi seminar that China’s prevailing status in the refining market is “an obstacle to IRA mechanisms working and that various ideas to build a US-led scheme to reduce dependency on China were being considered.”
See Also:
- Tesla-Panasonic tandem secures around $1.8B in US tax credits in 2023
- LG Energy Solution bets on US expansion to beat Chinese competitor CATL
- Panasonic to expand battery output at Tesla’s Gigafactory Nevada
- LGES confirms plans to invest USD 5.56 billion to construct its LFP battery plants in Arizona
- Hyundai, LG to establish a $4.3 billion EV battery factory in Georgia
Undoubtedly, electric automakers in the US and beyond are already experiencing the effects of the IRA. For instance, regional automakers are collaborating with overseas battery suppliers like LGES and Panasonic to develop a domestic battery cell production plant, securing qualification for the stringent battery requirements.
