This article was first published on Seeking Alpha on May 18, 2015.
By Sarfaraz A. Khan
Shares of Kandi Technologies (NASDAQ:KNDI), the Chinese company that makes go-karts, electronic vehicles, ATVs, UTVs and tricycles, have been getting hammered on high volume. On Monday, the company released a decent earnings report that featured modest year-over-year revenue growth and a swing to profit, but shares have fallen by 27.4% since then, settling at $9.13 when the markets closed on Friday.
Favorable business environment
Kandi initially started with making off-road vehicles but later, with its 50% joint venture with Geely Automotive (OTCPK:GELYY), one of China's biggest automakers and the owner of Volvo (OTCPK:VOLVY), Kandi has moved into the EV space and generated a majority of its 2014 revenues and profits from EV parts and products. The two companies are producing compact electronic cars, unlike the bigger ones that are manufactured by Tesla (NASDAQ:TSLA). Moreover, unlike Tesla that sells its vehicles directly to its customers, Kandi's vehicles are mainly rented at a fixed hourly rate. The company has built automated garages in China that can store hundreds of vehicles and work like vending machines. The company intends to build hundreds of such garages throughout the country's major cities.
On top of this, Kandi will begin selling at least two EV models directly to customer this year. One of these models, the K17 which can accommodate five passengers, is for the medium-end of the market and will be launched within a couple of weeks.
For a country like China, where major urban cities are extremely crowded and vehicle ownership rates are low … read full article at Seeking Alpha.