You are using an older browser version. Please use a supported version for the best MSN experience.

Kandi Technologies Shares Soar More Than 40% After NHTSA Approval

The Motley Fool logo The Motley Fool 2/20/2019 Daniel Miller

What happened

Shares of Kandi Technologies Group(NASDAQ: KNDI), a developer and manufacturer of electric vehicles, all-terrain vehicles (ATVs), battery packs, and other products, jumped over 40% Wednesday morning after an important announcement from the National Highway Traffic Safety Administration (NHTSA).

So what

Kandi announced today that its Model EX3 and Model K22 were approved for importation and registration by the NHTSA. It's a major development for the company and goes hand in hand with its qualification for the $7,500 U.S. federal tax credit in October 2018.

"With this, we are confident in introducing our reliable vehicles to the American public. We believe both the EX3 and K22 are competitive in price and quality with advanced tech features that are in demand by American consumers. We are confident that SC Autosports, our U.S. subsidiary, will have a successful launch and grow the EV market in addition to its powersports business," said Hu Xiaoming, Kandi's chairman and CEO, in a press release.

a car parked in front of a mirror: Kandi's EX3 SUV.© Kandi Technologies Kandi's EX3 SUV.

Now what

Now the company will be focused on launching the Model EX3 and K22 for the U.S. market, and the jury is out on whether the vehicles will be successful. But today's development, along with qualifying for the $7,500 federal tax credit, will open the door to a huge market opportunity for Kandi and bolster demand for its electric vehicles. The tax credit will begin to phase out once the automaker hits 200,000 U.S. deliveries, but that's far down the road.

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.


10 stocks we like better than Kandi Technologies

When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Kandi Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of January 31, 2019


More from The Motley Fool

The Motley Fool
The Motley Fool
image beaconimage beaconimage beacon