What happened
Actions of the Chinese manufacturer of electric vehicles Kandi Technologies (NASDAQ: KNDI) it shot up Wednesday afternoon, after the company announced it will launch two of its vehicles in the United States next month.
Shares of the US depositary at Kandi ended Wednesday’s session at $ 9.32, 140% more than Tuesday’s closing price.
And that
Kandi America, the company’s U.S. subsidiary, said Wednesday afternoon that it will launch two models in the United States in a virtual event on August 18. Interested customers will be able to deposit a refundable deposit of $ 100 at that time, the CEO of the subsidiary, Johnny Tai said.
Kandi’s K23 will be priced at around $ 30,000 before incentives when it launches in the United States next month. Image source: Kandi Technologies.
The two Kandi models in question, called K23 and K27, are small, affordable electric cars meant to be urban transport vehicles. These are not Teslas: The simpler K27 has a 17.7 kilowatt-hour (kWh) battery, an estimated range of 100 miles, and a “no haggle” price of $ 19,999 before incentives; its somewhat sleeker brother, the K23, has a 41.4 kWh battery, an estimated range of 188 miles, and is priced at $ 29,999 before incentives.
Kandi America is based in Garland, Texas. The company’s sales efforts will initially focus on the Dallas / Fort Worth area, he said.
The small K27 will be priced at around $ 20,000. Image source: Kandi Technologies.
Now what
It is difficult to know what automotive investors should do with this news. For one thing, any sale in the United States will be more than what Kandi has done here so far; On the other hand, the vehicles, particularly the K23, seem to have a somewhat high price for what they offer.
Consider that NissanLeaf and General engines’ (NYSE: GM) Chevrolet Bolt offers better range than the K23, nationwide service networks, and high build quality for just a few thousand dollars more than the K23. And consider other automakers, including the giant VolkswagenThey are expected to launch competitive models in this price range in the coming years.
Would you buy a Kandi over a Bolt or a Leaf? I’m not sure how many Americans would.
While I think Kandi investors are right to be excited about the news, I suspect their expectations may be unrealistic given Kandi’s competitive outlook and prices. Investors looking at the stock should probably be careful for a while.
