Tesla's AI chip announcement boosts Chinese supplier stocks

Tesla announced on Thursday that its AI5 chip is 45 days ahead of schedule, which caused stock prices for its Chinese suppliers to climb. Shanghai Beite Technology enjoyed the biggest boost, with shares surging 4.6 percent at one point and ending up 2.8 percent. This company supplies shock absorber rods for the Model 3. Meanwhile, Ningbo Tuopu Group and Zhejiang Sanhua Intelligent Controls, partners with Tesla since 2016, saw their shares rise by 4.3 percent and 3.4 percent, closing at gains of 3.5 percent and 1.5 percent, respectively. Sanhua's Hong Kong-listed shares increased by 1.9 percent. Both suppliers are looking to expand their work with Tesla into robotics parts, planning multi-billion yuan investments in 2024.