Samsung SDI's Shares Fall for Second Day, Tracking U.S. EV Stocks
By Kwanwoo Jun
Samsung SDI's shares were lower for a second consecutive session, in line with retreating U.S. electric-vehicle stocks, and paring most of gains made earlier this week on its plan to produce next-generation batteries.
Shares of the South Korean battery supplier for U.S. and other global EV manufacturers fell as much as 4.9% to 424,000 won ($320.08) in early trade Friday, extending losses after the prior session's 2.9% slide and underperforming the benchmark Kospi's 1.0% fall.
The retreat came after U.S. EV makers took a beating overnight on Wall Street. EV startup Fisker slumped 52% Thursday, as it prepares for a possible bankruptcy filing amid sluggish EV sales and a liquidity crunch. U.S. EV giant Tesla also fell 4.1% Thursday, its second straight day of losing more than 4%.
Seoul-based KB Securities analyst Kang Seong-jin said in a research report Friday that EV battery-suppliers are taking a hit from a slower-than-expected customer shift to EVs globally and also the recent decline in prices for both new and used EVs.
But Kang expects major global original equipment manufacturers to resume their delayed battery purchases possibly from the second half of 2024 on likely rebounding prices for EVs. He expects prices for EV batteries to also pick up from the third quarter.
Samsung SDI's retreat erased much of its gains Tuesday, when it surged 11% after outlining a plan to mass-produce all-solid-state batteries from 2027-- ahead of its industry rivals. Unlike conventional EV batteries with liquid-type electrolytes, the new EV batteries use solid electrolytes to ensure better safety and higher energy density.
Still, the stock gained 0.5% for the week and more than 10% in the past month, according to FactSet.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
March 15, 2024 00:08 ET (04:08 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth