Kandi Wins Capacity Approval for Car Production; Shares Spike 11%
“This approval of Kandi’s EV Project marks a milestone for the Company,” the company's chairman and CEO said in a statement today.
Shares in Kandi Technologies Group Inc. (Nasdaq: KNDI) soared more than 11 percent in early trading Wednesday to $4.92 apiece after the company announced that it received a key approval in its pure electric vehicle project.
In a statement today, the electric automaker said that its unit in Jiangsu province, Kandi Electric Vehicles Jiangsu Co., Ltd., was granted a green light regarding its annual capacity of 50,000 pure electric cars.
Since May 2017, Kandi's Jiangsu enterprise investment project was suspended because of the Renewable Energy Vehicle Enterprise Clean-up Regulations Act, which raised the standards for passing applicants, the company's chairman and chief executive officer, Xiaoming Hu, said.
However, he added, Kandi's application, filed before the regulations were tightened, has received approval based on the old terms.
"Only three enterprises nation-wide were approved," Hu said. "This approval of Kandi's EV Project marks a milestone for the Company."
The approval came as Beijing has encouraged the manufacturing of electric vehicles (EV) and provided subsidies for EV buyers in its initiatives for cleaner air. China is the world's largest producer and consumer of EVs, with sales in 2017 reaching 770,000, a 53 percent rise from 2016 and nearly four times the e-cars sold in the United States, as reported by Forbes.
Hu said, "In light of the positive outcome, this will be one of the many milestones in 2019 which will enhance Kandi's brand value and competitiveness, and in turn, driving Kandi's EV business growth to the next level."
Kandi Jiangsu is a joint venture between Kandi Electric Vehicles Co. Ltd., Geely Group Ltd., and Geely Group (Ningbo) Ltd., each holding 50, 26.08, and 23.92 percent, respectively, in the factory.