CATL, the world’s largest EV battery maker, recently announced lower revenue expectations for 2024, causing a dip in its stock prices. According to the company’s 2024 Annual Performance Forecast, CATL anticipates reporting between RMB 356 billion ($48.9 billion) and RMB 366 billion ($50.3 billion) in revenue, marking a decrease of 11.20% to 8.71% from the previous year.
The decline in revenue is attributed to falling raw material prices, particularly lithium carbonate, despite an increase in sales volume. However, CATL remains optimistic about its net income projections, expecting to post between RMB 49 billion ($6.7 billion) and RMB 53 billion ($7.3 billion), representing an 11.06% to 20.12% increase from 2023.
Excluding non-recurring gains and losses, the company forecasts net profit attributable to shareholders to be between RMB 44 billion ($6 billion) and RMB 47 billion ($6.5 billion), up 9.75% to 17.23% from the previous year. CATL attributes the higher net profits to its technological research and development capabilities, as well as the increased competitiveness of its products.
Despite the revenue setback, CATL continues to focus on innovation and expansion. The company recently launched the Bedrock Chassis, touted as “the world’s first ultra-safe” EV skateboard chassis. Additionally, CATL is expanding its EV battery swap plans with the introduction of Choco-SEB batteries, which allow for quick swapping in under 100 seconds.
CATL’s global market dominance is evident, with the company holding a 36.8% share of the EV battery market in the first 11 months of 2024. Furthermore, CATL is poised for further growth with plans to establish a new EV battery plant in Europe, in addition to its existing facilities.
While CATL’s stock experienced a slight decline following the revenue forecast, the company’s shares have seen a significant increase of nearly 70% over the past year. Investors remain optimistic about CATL’s future prospects as it continues to innovate, expand its product offerings, and solidify its position as a leader in the EV battery industry.
