Kandi to Bring E-Vehicles to America; Stock Soars 13%
(Updated with closing stock price)
The stock of Kandi Technologies Group Inc. (Nasdaq: KNDI) soared nearly 13 percent Tuesday to $4.63 per American depositary share after the Chinese vehicle maker said it is bringing its electric vehicles to the United States in a joint venture with Sportsman Country LLC, a Dallas-based seller of vehicle products, which Kandi acquired last month.
Zhejiang JiHeKang Electric Vehicle Sales Co. Ltd., signed an agreement with Sportsman over the weekend to ship to the U.S. pure electric prototypes, among them Model EX3 and Model K22, by August 10. The two models were designed for the American market, the company said in its statement.
Zhejiang is a wholly-owned subsidiary of Kandi Electric Vehicles Group Co. Ltd., also known as "JV Company," which is half-owned by the Chinese carmaker giant, Geely Group (Ningbo) Ltd.
"The pure electric vehicle market in the United States is full of potentials," Kandi's chairman and chief executive officer, Xiaoming Hu, said in a statement. "The JV Company&`#`39;s EV products are competitive in price and quality. Sportsman is capable of growing the EV business and expanding the sales channel in the United States."
Earlier this month, Kandi announced that it was taking ownership of Sportsman after the two companies signed an agreement on May 31. The management of the American company has more than 10 years of sales experience with nationwide distribution channels, Kandi said in its announcement of the deal.
Sportsman's chairman, David Shan, said, "The electric vehicles that are manufactured by the JV Company possess a trendy appearance, as well as good performance and affordable pricing; these are highly competitive in the US market."
The stock of Kandi soared nearly 13 percent Tuesday to $4.63 per share after the electric carmaker announced it would bring its cars to the U.S. markets.
(Source: Thomson Reuters Eikon)