Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Kandi Technologies Group, Inc. Shares Flew

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

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Kandi Technologies Group, Inc. Stock Quote
Kandi Technologies Group, Inc.
$3.76 (7.43%) $0.26

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/07/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.