Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Kandi Technologies (NASDAQ:KNDI) were busting loose again today, jumping as much as 24% before finishing 15% as investors continued to bid the stock up on enthusiasm for its recently announced increase in electric-vehicle sales. The stock has now gained close to 50% in just two trading sessions.
So what: Last week, Kandi said it expects to deliver 2,800 electric vehicles this quarter, a strong improvement from just 3,915 deliveries last year. Considering the gains made by Tesla Motors stock this year as its business model has proved viable, perhaps it's no surprise to see another electric-vehicle maker's stock soaring. An additional factor that adds huge upside to Kandi's potential is a recent joint venture with Geely to launch a car-sharing service in the city of Hangzhou that could include more than 100,000 cars.
Now what: With enormous upside potential in the EV industry and plans for projects like the 100,000-strong car-sharing program, it's easy to see why Kandi shares are flying. The company is not currently profitable, but future expected earnings go a long way in the stock market, and electric vehicles are just the kind of nascent industry that could bring huge returns to Kandi in 10 or 20 years. That's reason enough for me to consider investing.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.