NEW YORK ( TheStreet) -- A Chinese electric vehicle maker is stealing some of Elon Musk's mojo.
Tesla (TSLA) shares fell nearly 3% in advance of its first quarter earnings report, scheduled for after the market close tomorrow. Meanwhile, China-based electric vehicle manufacturer Kandi Technologies (KNDI) rose as much as 6% higher amidst a spate of bullish articles on the potential of the Chinese electric car market and Kandi specifically.
Recent news from Kandi is fueling bullish sentiment. Last week, Kandi inked a deal with a lithium-ion battery manufacturer for 25,000 battery cases to help bring more electric vehicles to market. Kandi currently rents out its electric cars for short-term durations. But, with the battery deal, investors see a future where Kandi supplies the middle class with electric vehicles for sale.
Tesla CEO Elon Musk, of course, intends to do just that with Tesla's fourth generation mass-market car. However, right now Tesla only has offerings for wealthier consumers. Tesla's upcoming SUV will still be targeted to the upper middle class. Kandi is already focused on the middle class consumer with its smaller, budget friendly cars and all-terrain vehicles.