NEW YORK (TheStreet) -- Kandi Technologies (KNDI) is driving in the right direction. That was the verdict Monday after the Chinese all-terrain and electric vehicle maker reported nearly 385% growth in its electric vehicle business.
Shares rose nearly 20% Monday morning to $13.71. Many investors on StockTwits.com called for more gains. Sentiment on the stock is 97% bullish, according to site analytics.
$KNDI i think is going to hit 14.......? Felly Firecracker (@FellyFirecracker) May. 12 at 10:56 AM
Kandi, which manufactures electric vehicles for "sharing," or short-term rental, said its electric vehicles unit brought in $8.4 million in sales during the first quarter. Its electric vehicle battery packs and parts division brought in another $25 million. Those results helped drive year-over-year sales up 174% to $40.2 million.
Kandi also saw strong results from a joint venture to create electric vehicle parts. The business, half-owned by Kandi and half-owned by a subsidiary of Geely Automobile (GELYF), brought in $1.7 million during the quarter.
Kandi CEO Xiaoming Hu characterized the financial results as satisfying and expressed confidence in the company's electric-vehicle business. "The Public EV Sharing Project in Hangzhou is making modest progress and several other cities have approached us to discuss implementation of the project in their cities. We are very confident about the continuous high growth of our EV business," he said.
Hu also said that the joint venture should help Kandi soon become "the leading fully integrated provider of pure EVs in China."
Whoever dominates the electric vehicle market in China stands to become one of the largest alternative vehicle manufacturers in the world. China's air pollution problem has prompted the government to adopt generous subsidies for electric vehicle makers. The government has also set a target of five million electric vehicles by 2020. And Tesla (TSLA) CEO Elon Musk has identified China as the greatest opportunity for electric vehicle manufacturers.
$KNDI "#1 ev maker in china" speaks volume. Pollution ain't going nowhere there.. This is a need not a want.? chouavue (@chovue2013) May. 12 at 11:10 AM