Seven-Minute Surge to Limit-Up! Major Positive Catalyst for Musk

During the morning session on March 20, A-share photovoltaic and energy storage concept sectors experienced volatile gains. Zhengtaidianyuan surged to the daily limit-up in a straight line just seven minutes after the market opened. Shouhang Xinneng rose over 19%, while Ailuonengyuan, Huamin Co., Ltd., Jinlang Technology, Deye Co., Ltd., Yangguangdianyuan, and Hemai Co., Ltd. all gained more than 5%. Lithium battery stocks also received a significant boost.

According to a Reuters report, Tesla Motors is seeking to procure photovoltaic production equipment worth $2.9 billion from Chinese suppliers. Suzhou Maiwei Co., Ltd. is one of the primary candidate suppliers for manufacturing equipment for this photovoltaic project. Other Chinese companies in discussions with Tesla Motors regarding the photovoltaic project include Jiejiaweichuang and Laplusi. At midday on March 20, a report from Beike Caijing cited confirmation from a photovoltaic enterprise about the news, revealing that the contract scale is at the gigawatt level.

The market saw a collective surge during the morning session following the sudden positive news related to Tesla Motors, led by Elon Musk. The Reuters report indicated that Tesla Motors is looking to purchase photovoltaic production equipment from Chinese suppliers valued at $2.9 billion. This announcement ignited market sentiment.

On March 20, photovoltaic concept stocks rallied sharply. Shangneng Dianqi hit the 20% daily limit-up, Shouhang Xinneng rose over 19%, while Jiuzhou Group and Ailuonengyuan gained more than 15%. Jinlang Technology and Yuneng Technology increased over 14%. Zhengtaidianyuan surged to limit-up in a straight line just seven minutes after the opening.

According to Wood Mackenzie data, Zhengtaidianyuan achieved a 30.2% market share for commercial and industrial photovoltaic inverters in North America by 2025, ranking first and leading the second-place SMA by 9.5 percentage points. In February 2025, the company signed a 761 MW photovoltaic inverter order with Romanian EPC contractor ENEVO Group, a benchmark project for large-scale ground-mounted power stations in Europe, marking a key breakthrough in the ground-mounted power station market.

Likely driven by the photovoltaic sector, lithium battery concept stocks also experienced a rapid uptick before the midday break. Penghui Energy and Haike Xinyuan rose over 10%, while Putailai and Shida Shenghua hit the daily limit-up. Yiwei Lithium Energy and Hunan Yueneng gained more than 8%. This contributed to the ChiNext Index rising 3.3% in the morning session.

Positive developments also emerged from Europe regarding new energy. Escalating tensions in the Middle East have increased volatility in international energy markets. Consequently, the EU summit held in Brussels on March 19 shifted its focus from enhancing European competitiveness to urgent energy issues. However, significant divisions exist within the EU on how to address the current energy crisis. While all parties agree on the urgency of mitigating energy supply risks, disagreements on specific approaches are pronounced. The summit featured intense debate around the Emissions Trading System (ETS). Ten countries, including Poland, the Czech Republic, and Slovakia, argue that the ETS exacerbates rising energy prices and harms domestic industries, urging the European Commission to reassess the system by the end of May at the latest. Meanwhile, eight countries, including Spain, the Netherlands, and Denmark, advocate for maintaining the stability of the ETS and oppose administrative intervention in carbon prices or market access rules.

Industry sentiment is currently recovering as the sector navigates parallel phases of capacity rationalization and technological iteration. Prices for polysilicon, wafers, and cells continue to decline, module prices are stabilizing, while costs for silver paste and glass remain under pressure. Photovoltaic equipment is leading the power equipment sector, with leading companies showing strong performance. The photovoltaic inverter theme, in particular, is exhibiting a positive upward trend.

Guoxin Securities believes development trends will focus on breakthroughs in high-efficiency cell technologies (such as perovskite tandem cells), the construction of large-scale bases, and synergy with new energy storage. Key drivers include the clear layout of ten major clean energy bases outlined in the "15th Five-Year Plan," the target to double new energy installation capacity by 2035, local industrial support (such as Yibin's 400 billion yuan photovoltaic target), and the demand for integration and storage driven by the construction of new power systems. Investment logic centers on profit recovery through supply-side reforms, the combined effect of technological alpha and policy beta, with a preference for leading companies and those with advanced technology.

From a supply perspective, data from Aijian Securities shows that photovoltaic module scheduling rebounded significantly to 44 GW - 45 GW in March 2026, a month-on-month increase of 28% - 29%. Domestic scheduling reached 32 GW - 33 GW, while overseas scheduling was 11 GW - 12 GW. India maintained stable levels, but Southeast Asia saw reduced utilization rates due to tariff risks, while U.S. production remained steady.

Lithium battery industry scheduling also grew concurrently. Combined scheduling for power, energy storage, and consumer batteries reached 219 GWh (China) and 232 GWh (globally), with incremental growth concentrated in large-format energy storage cells and leading enterprises. Photovoltaic polysilicon prices continue to trend downward, and TOPCon cell prices have decreased, but overall energy storage system prices are rising.