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Why Kandi Technologies Group, Inc. Shares Flew

By Brian D. Pacampara, CFA - Mar 17, 2014 at 11:20AM

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Is this meaningful or just another movement?

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 electric-vehicle (EV) maker Kandi Technologies Group, Inc. ( KNDI 7.43% ) surged 17% today after its quarterly results topped Wall Street expectations.

So what: The stock has skyrocketed over the past year on optimism over growing EV adoption, and today's Q4 results -- non-GAAP net income spiked 259% on a revenue surge of 92% -- only confirm those good vibes. In fact, Kandi sold 3,568 units of electronic vehicles during the quarter, reinforcing its place in Mr. Market's mind as a particularly pure EV play.

Now what: Don't expect Kandi's growth momentum to slow anytime soon. "Together with JV partner, Geeley Auto, we now have three full-scale specialized EV production facilities, located in Shanghai, Changxing and Jinhua, which enable us to meet the strong market demand for electric vehicles in coming years," Chairman and CEO Xiaoming Hu said. "We look forward to another stellar year in 2014 as Kandi continues to expand our EV sharing business in our existing markets as well as other major cities in China." Of course, with the stock now up a staggering 490% over its 52-week lows, much of that growth potential might already be baked into the valuation.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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Kandi Technologies Group, Inc. Stock Quote
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