Zhejiang Shibao Co. Ltd. – Market Reaction to Tesla’s Cybercab Announcement
1. Background of Zhejiang Shibao
Zhejiang Shibao, listed on the Hong Kong Stock Exchange (stock code 01057.HK), specializes in the development, design, manufacturing and sale of automobile steering and steering‑system components. Its product portfolio includes hydraulic power recirculating ball steering units, steering boosters, rack‑and‑pinion steering systems, and control valves. The company’s 2026‑02‑19 close price was HK $6.16, with a 52‑week high of HK $23.34 (2025‑12‑25) and a 52‑week low of HK $2.49 (2025‑04‑08). Its market capitalization stands at HK $11,258,253,312.
2. Tesla Cybercab Announcement
On 2026‑02‑18, Tesla announced that its first production‑grade Cybercab had been completed at its Texas super‑factory. The Cybercab is the first electric vehicle expressly designed for a fully autonomous “robotaxi” service: it lacks a steering wheel, pedals and rear‑view mirrors. Elon Musk stated that production would begin in April 2026 and that the vehicle would be priced no higher than US $30 000. Expected operating costs are projected at US $0.20 per mile (≈ CNY 0.89 per kilometer). The announcement is interpreted by analysts as a significant step toward commercial deployment of L4‑level autonomous ride‑hailing services.
3. Market Impact on Zhejiang Shibao
| Item | Detail |
|---|---|
| Date of price jump | 2026‑02‑23 |
| Percentage increase | 19.97 % |
| Closing price | HK $7.39 |
| Historical high | HK $7.39 (new record) |
The share price surge is attributed to the perception that Zhejiang Shibao’s steering‑system products will be required by Tesla’s Cybercab, and more broadly by the anticipated expansion of autonomous‑vehicle fleets. Analysts from CITIC Jian‑Tian and East Securities forecast that Cybercab production will follow an S‑curve, with long‑term output exceeding that of all other Tesla models combined. Consequently, suppliers in the automotive‑components sector, including Zhejiang Shibao, are expected to benefit from sustained incremental demand.
4. Context within the Broader Hong Kong Market
- Sector performance: The Hong Kong market opened higher on 2026‑02‑23, with the Hang Seng Index up 2.29 % and the Hang Seng Technology Index gaining 3.32 %. The automotive‑components sector was among the strongest performers, with Zhejiang Shibao rising nearly 15 % in pre‑market trading.
- Investor sentiment: Media commentary highlighted the “unprecedented” rally of intelligent‑driving and autonomous‑vehicle stocks, noting that 51 Chinese A‑share smart‑driving companies had released 2025 performance reports, many showing significant profitability.
5. Implications for Zhejiang Shibao
- Demand outlook: The Cybercab announcement is expected to create a new supply chain requirement for steering‑related components designed for driver‑less vehicles. Zhejiang Shibao’s product range aligns with this need, potentially increasing orders from Tesla and other automakers pursuing autonomous fleets.
- Valuation effect: The 19.97 % price jump brings the share to a new 52‑week high, reflecting heightened investor confidence in the company’s growth prospects in the autonomous‑vehicle market segment.
- Risk factors: While the market reaction is positive, actual delivery volumes will depend on Cybercab production timelines and the broader adoption rate of robotaxi services. Any delays or technical challenges could temper the upside.
6. Conclusion
The Tesla Cybercab rollout has provided a clear, positive catalyst for Zhejiang Shibao’s share price, driving a near‑20 % increase on 2026‑02‑23 and setting a new historical high. The company’s positioning in steering and steering‑system components, coupled with the projected growth of autonomous ride‑hailing services, underpins the market’s optimistic assessment. Investors should monitor Tesla’s production progress and the broader autonomous‑vehicle supply chain for future developments.
