NEW YORK (TheStreet) -- Electric vehicle manufacturer Kandi Technologies (KNDI - Get Report) revved ahead Wednesday as investors reacted to a Chinese-language report showing the strength of Kandi's electric vehicle business.
The report, which many translated via Google, indicated that Kandi small electric vehicle production reached 1,565 cars in May. Tesla (TSLA - Get Report), for comparison, imported 532 cars, according to the translated article.
The news came in the wake of a series of bullish articles on the Chinese electric car industry. The Wall Street Journal reported Saturday that China is changing how it offers green sales subsidies to electric car makers, making it easier for companies to sell cars outside their local province. Reuters reported that BMW will deliver electric cars to China in September, and executives believe the country will quickly become the biggest market for electric vehicles.
$KNDI Last 3 months I only heard good things about the company. Numbers are astronomical ER, car prioduction. Building up for a rally. ? Ronny Hansen (@Maxgain0114) Jun. 11 at 02:21 PMKandi shares rose 4.4% today, as of 3:15 p.m. The stock is up about half-a-percent since the start of the month. The stock was among the top trending tickers on StockTwits.com Wednesday afternoon. Sentiment is 91% bullish, according to StockTwits' analytics.
$KNDI Last two ER's were blowout with amazing YOY growth... How much you wanna bet the trend continues? ? Dee Ehl (@Deluxeones) Jun. 11 at 02:24 PMThe stock climbed more than 9% after Kandi reported earnings last month, but those gains faded somewhat over the course of the month. The company said in May that revenues increased 174% in the first quarter to $40.2 million. Electric vehicle sales rose nearly 385% to $8.4 million. The company also reported net income, excluding the impact of financial derivatives and stock awards, of $1.6 million. That was 30.4% higher than comparable net income in the first quarter of 2013. In a earnings press release, management expressed confidence in the continued growth of its electric vehicle business. In addition to its electric car manufacture and rental business, the company also sells all-terrain vehicles, Go-Karts and motorcycles. "We are very confident about the continuous high growth of our EV business. Through out partnership with Geely and our advanced production capabilities, we soon expect to become the leading fully integrated provider of pure EVs in China." Some investors argued Wednesday that China's lottery for car license plates -- a method of curbing traffic congestion in big cities -- is fueling demand for electric car rentals. They bet Kandi's stock would continue to rise as long as China kept its lottery and the nation's car-demanding middle class continued to swell.
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