What: Kandi Technologies (NASDAQ:KNDI) stock soared as high as 13.2% during trading on Tuesday. Shares closed the trading day up 13.07%.
So what: While there doesn't seem to be any material news directly related to the the electric-car maker on Tuesday or over the extended weekend, the rise may have been driven by overall bullish sentiment in the market. Stocks are trading higher on Tuesday after many companies' shares have been beaten lower year-to-date. The technology sector, which electric car companies often find themselves associated with, saw a notable rebound on Tuesday.
It's likely this overall rebound of tech stocks helped spur Kandi stock higher on Tuesday.
Despite Kandi stock's nice jump on Tuesday, the stock is still down 46% during the trailing 12 months and 34% year-to-date. Some investors may simply be convinced Kandi stock offers a compelling entry point at these levels.
Now what: Investors should expect plenty of volatility ahead. As a small-cap stock, Kandi will likely see bigger swings in its stock price than the overall stock market.
Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Kandi Technologies. 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.