Jefferies: Optimistic on CATL A shares, LG's new energy orders are not expected to pose a threat.

Jefferies stated that on Wednesday, both A and H shares of CATL fell, as LG New Energy reportedly received an order for lithium iron phosphate batteries from Tesla. However, Jefferies believes that CATL still has a technological advantage of 6-8 years in this field, and currently favors CATL's A shares, with an expected upside potential of 35%. They also mentioned that the premium of CATL's H shares over A shares is over 40%, and it may be difficult to sustain in the medium term. The lock-up period for H shares is until November 2025, and after the lock-up period expires, some cornerstone investors may take profit, which could lead to the premium narrowing.