Stimulated by the 'new energy vehicle development plan 2021 – 2035,' CATL has become the first company to reach a CNY 600 billion market capitalization in the China Growth Enterprise Market.
On November 2, 2020, the State Council of the People's Republic of China published 'New Energy Vehicle Development Plan 2021 – 2035.' The plan outlined a plan to accelerate the implementation of tax preferential policies related to new energy vehicles and advance the development of charging and hydrogenation fundamentals by giving fiscal support. The goal of this plan is to construct favorable market rules and circumstances for sustaining development.
According to the plan, by 2025, new pure electric vehicles' electricity consumption proficiency should be lowered to 12 kWh per hundred kilometers. Meanwhile, the sales of new energy vehicles should hit 20% of the sales of all new vehicles and should achieve self-driving vehicles commercial applications in special scenarios and regions. In 15 years, core technologies of Chinese new energy vehicles should reach the international advanced level, the quality and brands should have strong international competitiveness.
Stimulated by the significant bullish news, CATL was up 7.50% and reached a historical high of CNY 265.50. CATL has become the first company that has over CNY 600 billion market capitalization in China Growth Enterprise Market, CNY 120 billion higher than Mindray (300760:SHE) who has the second-largest market capitalization. CATL stock (300750:SHE) has gained 144.49% since the start of 2020.