Shares of Kandi Technologies Group (KNDI -1.20%), 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).
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.
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.