CATL, a key Tesla supplier, experienced a 13% surge in its Hong Kong trading debut on Tuesday morning. The initial public offering (IPO) raised HK$35.7 billion, equivalent to $4.6 billion, with the primary intention of funding its expansion in Europe. The stock was listed at HK$263 per share. CATL has been listed on the Shenzhen Stock Exchange since 2018.

Dual listings, where a company's stock is traded on multiple exchanges, provide access to increased capital and allow for extended trading hours across different time zones. Hong Kong listings are particularly favored by Chinese companies, as they facilitate international investor participation.

According to a February filing with the Hong Kong exchange, a significant portion of the raised capital will be allocated to constructing a $7.6 billion battery plant in Hungary, with the remaining funds designated for general business operations. CATL also maintains a partnership with Stellantis, the parent company of Jeep and Fiat, in Spain.

HSBC analysts, led by Elaine Chen, highlighted CATL's dominant position in the EV battery market, attributing it to continuous product upgrades and innovation. They anticipate further volume opportunities in Europe, driven by CATL's affordability and advanced lithium iron phosphate (LFP) technology.

CATL is intensifying its competition with industry rivals Tesla and BYD. Recently, the company introduced an enhanced version of its Shenxing battery, claiming it can add 520 kilometers (323 miles) of range to electric vehicles with just five minutes of charging. This development addresses concerns among potential EV buyers regarding charging times.

In January, the Department of Defense included CATL in its list of "Chinese military companies" operating in the United States. CATL has refuted any association with the Chinese military and has expressed its intention to challenge the decision through legal means if necessary.