NEW YORK (TheStreet) -- Kandi Technologies (KNDI) rose Tuesday amid reports that China is considering providing approximately $16 billion in government aid to build charging stations for electric vehicles to help stimulate demand for the cars, according to Bloomberg.
The report states the policy should be announced soon. The funding would provide a boost to electric car makers, who have struggled with consumer concerns about price, dependability and convenience of the vehicles. The financial aid would also support China's efforts to reduce pollution (the nation is currently the largest carbon emitter in the world) and stimulate its electric vehicle industry, which includes Kandi Technologies.
The stock was up 10.89% to $20.26 at 9:35 a.m.
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Separately, TheStreet Ratings team rates KANDI TECHNOLOGIES GROUP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate KANDI TECHNOLOGIES GROUP (KNDI) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and poor profit margins."