Why it's happening: The drop comes despite Kandi announcing a significant new $89 million sales contract yesterday for 4,000 units of Kandi Brand electric vehicles, including 1,500 Kandi K11 and 2,500 Kandi K10 units. Kandi expects to complete delivery of the vehicles by the end of this year. Last week Kandi also announced the receipt of a $44.3 million subsidy from the Chinese government to curb air pollution and support growing demand for clean, renewable-energy vehicles.
Nonetheless, Kandi and other Chinese stocks are falling hard this week despite government efforts aimed at stabilizing the market, which has plummeted from recent highs after making big gains early in the year. The Shanghai Composite Index, for example, is down 1.3% today and has fallen 26% over the past month, while the technology-centric Shenzhen Composite index has declined over 5% so far in today's trading. Hundreds of other Chinese companies have also suspended trading over the past few days.
But Kandi's actual business continues to hold promise and gain traction even in these slippery markets.