Kandi (NASDAQ: KNDI) Shares Adding To Their Massive Gains From Yesterday as the Chinese EV Manufacturer Reveals Its K23 and K27 Models Today
Kandi America (NASDAQ:KNDI), the U.S. subsidiary of the Chinese EV manufacturer Kandi Technologies Group, is benefiting from an amalgamation of indigenous positive developments as well as the extraordinary effervescence that has surrounded almost all EV stocks lately. As an illustration, Kandi shares have registered a whopping gain of 168 percent since the 1st of July. Yesterday alone, the stock added 10.4 percent or $0.96.
So, what spurred Kandi’s 10 percent plus gain yesterday? Well, as per the press statement released on the 17th of August, Kandi is slated to host a virtual event today at 10:00 a.m. CT. The company explained the rationale behind the event in the following words:
“During the event, viewers will have an exclusive look at the sleek design and advanced technology features of the Kandi K23 and K27 electric vehicle (EV) models.”
The press statement also highlighted the details of a K23 model giveaway:
“Additionally, those who officially registered at DriveKandi.com after Aug. 5 and before 8:30 a.m. CT on Aug. 18 are entered into the “Kandi Auto EVolution For All Giveaway,” where one lucky entrant will win a K23.”
Viewers will be able to watch the Kandi virtual event live through the following channels:
Investors have reacted to this development in a euphoric manner. In addition to yesterday’s gains, the stock is up another 3 percent in today’s pre-market trading session.
Of course, this is not the only positive development that Kandi has announced recently. On the 13th of August, Kandi America announced a partnership with Wrench, a mobile vehicle maintenance and repair solution. The company noted in its press release:
“With this partnership, Kandi America and Wrench have established the first-of-its-kind electric fleet agreement to provide onsite, high quality, contactless service for any warranty issues.”
Additionally, Kandi has already disclosed the pricing and pre-order information for its K23 and K27 models. According to the details, the first 1,000 pre-orders for the K23 EV will retail at $27,499 instead of the $29,999 MSRP. Pre-orders can be registered at https://drive.kandiamerica.com by submitting a fully-refundable $100 deposit to secure the order. Deliveries are expected to commence in Q4 2020.
For Q2 2020, Kandi revealed $19.4 million in revenue and a net income of $4.1 million, becoming just a handful of EV manufacturers to report a positive bottom-line figure amid the ongoing coronavirus (COVID-19) pandemic and the associated macroeconomic weakness.
It should be noted that China’s EV space is growing increasingly crowded with the emergence of new names, such as NIO (NYSE:NIO), Kandi, Li Auto (NASDAQ:LI), Xpeng, etc. Unlike the bulk of new players emerging in the EV space recently, Li Auto manufactures Extended-Range Electric Vehicles (EREVs). These are essentially hybrid vehicles that utilize gasoline to extend the range of the car, thereby, proving to be an effective solution for China’s growing, yet still relatively limited, EV charging infrastructure.
Of course, it is not just Chinese EV manufacturers that are listing on American exchanges in droves in order to acquire vital capital. The SPAC model of listing has become quite popular among domestic players, utilized by the likes of Nikola (NASDAQ:NKLA), Fisker, and Lordstown Motors. As a refresher, a Special Purpose Acquisition Company (SPAC) – also known as a blank check company – is formed for the sole purpose of raising capital through an IPO and then to channel these IPO proceeds into acquiring an existing company.