CATL Shares Plunge 5.4% After Cofounder Announces 1% Stake Sale – What’s Next for the Battery Giant?

• Why Did CATL’s Stock Drop Suddenly?
• The Anchor Share Unlock: A Ticking Time Bomb?
• Profit Growth Hits a 6-Year Low – Should You Worry?
• US-China Tensions: The Inverter Controversy
• Silver Linings: Lithium Demand & Hong Kong IPO
• FAQ: Your CATL Crash Questions Answered

CATL, the world’s largest EV battery maker, saw its shares tumble after cofounder Huang Shilin revealed plans to offload a 1% stake. The sell-off comes amid geopolitical tensions, slowing profit growth, and a looming share unlock event. Here’s why investors are nervous—and why some see this as a buying opportunity.

Why Did CATL’s Stock Drop Suddenly?

Shares of Contemporary Amperex Technology Co. (CATL) nosedived up to 5.4% in Shenzhen and Hong Kong markets today (November 18, 2025) after Vice Chairman Huang Shilin, the company’s third-largest shareholder, filed to sell approximately 1% of his holdings. While the sale will occur via private placement (avoiding open-market pressure), traders clearly aren’t taking chances. "Any major insider sell-off rattles confidence, especially when CATL’s facing headwinds," noted a BTCC market analyst.

The Anchor Share Unlock: A Ticking Time Bomb?

Adding fuel to the fire, 77.5 million restricted "anchor shares" will become tradable starting November 19. Historically, such unlocks trigger volatility—just look at Xiaomi’s 2023 post-lockup 12% slump. CATL’s aggressive ¥254M buyback program might cushion the blow, but let’s be real: you can’t outspend a sentiment shift.

Profit Growth Hits a 6-Year Low – Should You Worry?

2024 marked CATL’s first revenue decline (-8.7% to -11.2%), though net profit grew 15% to ¥50.7B. That profit growth? The slowest since 2019. The culprit? Rampant price wars in China’s battery sector. As Morgan Stanley’s report quipped, "CATL’s playing chess while rivals play Hungry Hippos."

US-China Tensions: The Inverter Controversy

Republican lawmakers are pushing to ban Chinese-made grid components, including CATL’s battery inverters, citing "undocumented communication devices" (read: potential backdoors). If passed, this could kneecap CATL’s US energy storage ambitions. Remember the Huawei ban? Yeah, that playbook.

Silver Linings: Lithium Demand & Hong Kong IPO

Changjiang Securities predicts CATL’s lithium demand could surge 30% by 2026. Plus, its planned HK IPO (approved for 220M shares) may fund expansion into next-gen EV and grid batteries. As one fund manager told me, "CATL’s down but not out—this dip smells like opportunity."

FAQ: Your CATL Crash Questions Answered

How much did CATL shares drop today?

Shares fell up to 5.4% in Shenzhen, with parallel declines in Hong Kong.

Why is Huang Shilin selling CATL stock?

The filing didn’t specify reasons, but 1% sales often signal portfolio rebalancing rather than doom.

Is CATL’s buyback program effective?

It’s a Band-Aid. The ¥254M buyback only covers ~1M shares—peanuts against today’s sell-off volume.