Investors in Kandi Technologies (NASDAQ:KNDI) are getting a sugar rush Tuesday afternoon, as shares of the Chinese electric-car maker had jumped ahead 21.5% as of 2:30 p.m. EST Tuesday.
What's making Kandi stock zoom today? This morning, the company announced that the Texas Commission on Environmental Quality has confirmed that both of the company's electric-car mdels, the K23 electric SUV and K27 compact car, qualify for Texas' offering of a $2,500 state tax rebate on purchases of renewable fuel-powered automobiles.
Kandi America CEO Johnny Tai seemed very excited by the news, and called "the additional $2,500 rebate in Texas ... a great incentive to encourage consumers to consider switching to an EV." When combined with a $7,500 federal tax credit, the incentives, said Kandi, mean that a consumer can now buy a Kandi car "for less than $8,000."
But you'll have to act fast if you want one. Kandi notes that there's only a limited quantity of $2,500 tax rebates available. Indeed, according to EnergySage.com, Texas only allows tax rebates for the first 2,000 applicants, and federal tax rebates also phase out over time as the number of EVs sold by a given manufacturer grows.
Yet even just 2,000 tax rebates in Texas offer Kandi a big boost to its sales efforts and could help the company generate $35 million to $55 million in sales in Texas alone, depending on how many buyers opt to buy a $17,499 (pre-rebate) K27 or a $27,499 (pre-rebate) K23.