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Shares of China-based Kandi Technologies Group Inc. (KNDI - Get Report) surged on Wednesday after the U.S. National Highway Traffic Safety Administration gave the nod for the carmaker to sell its electric vehicles in the United States.

Kandi shares jumped more than 40% on the Nasdaq Stock Exchange after the NHTSA said it had approved the company's request to sell its Model EX3 and Model K22 EVs in the U.S.

"With this, we are confident in introducing our reliable vehicles to the American public," Kandi CEO Hu Xiaoming said in a statement. "We believe both the EX3 and K22 are competitive in price and quality with advanced tech features that are in demand by American consumers."

While the two cars are defined as all-electric, Kandi is not strictly an electric vehicle producer like Tesla Inc. (TSLA - Get Report) , in that it offers more than just EVs, including three-wheel motorized "tricycles" and other machines. Kandi is a joint venture of Kandi Vehicles and Geely Group, one of China's biggest automakers.

While no final price was announced, previous reports have pegged the two models at less than $20,000. 

Kandi shares have more than doubled in the past year and hit a fresh 52-week high on Wednesday of $8.44 a share. Shares of Tesla, meanwhile, were down just more than 1%.