CATL Shares Fall as Major Shareholder Plans 1% Stake Sale Through Inquiry-Based Transfer

Shares of Contemporary Amperex Technology Co. Ltd. (CATL), the world’s largest EV battery manufacturer and a key Tesla (NASDAQ: TSLA) supplier, declined on Monday after the company revealed that one of its major shareholders plans to sell a portion of his stake via an inquiry-based transfer.

According to a regulatory filing released Friday, shareholder Huang Shilin intends to sell 45.63 million CATL shares—equivalent to about 1% of the company’s total share capital. Huang currently owns more than 10% of CATL, making him a significant shareholder, though he does not hold any management role within the company.

Following the announcement, CATL’s Shenzhen-listed shares dropped as much as 5.3%, while its Hong Kong-listed stock slid 4.8%, reflecting investor concerns over the sizable stake sale.

Unlike traditional on-market transactions, this sale will be conducted through a bid-collection process handled by China International Capital Corporation. Qualified investors participating in the acquisition will be required to hold the purchased shares for a minimum of six months, a condition designed to maintain market stability and prevent rapid resale.

CATL noted that the final pricing will be determined through competitive bidding but cannot fall below 70% of the average trading price over the past 20 sessions. This pricing rule aims to ensure fairness and protect the stock from excessive downward pressure.

The company clarified that Huang is selling the shares to address personal funding needs, emphasizing that the transaction is not tied to CATL’s operations or financial outlook.

The planned sale arrives at a time when CATL remains a dominant force in the global EV battery market, and any movement involving major shareholders tends to draw close attention from investors seeking signals about market sentiment and long-term confidence.