Contemporary Amperex Technology Co. Ltd. (CATL) is poised to report an earnings beat next week, potentially triggering a short squeeze. The battery maker’s shares have surged on speculation tied to rising energy prices, with traders betting against the stock facing heightened risk. Investors who shorted CATL may face significant losses if the company’s results exceed expectations, as the stock’s volatility could accelerate.

The situation highlights the intersection of energy market dynamics and investor sentiment in the electric vehicle supply chain.