Kaixin Auto Shares Jump 22% Premarket After Sales Contracts

Kaixin Auto Holdings (NASDAQ: KXIN) shares are rallying premarket on Tuesday after the company said Haitaoche Limited, through its subsidiaries, has entered into two vehicles sales framework contracts with third-party customers.

The company entered into the contracts in November and December of 2020.

At the end of December 2020, Kaixin agreed to acquire Haitaoche, a China-based online retail platform for imported vehicles.

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Kaixin said the two vehicle sales contracts will see the customers purchase a total of approximately US$75 million worth of consumer vehicles from the subsidiaries of Haitaoche in 2021, and the volume of sales will then increase by at least 20% annually over five years. The total amount of both vehicles sales contracts is approximately US$1.2 billion.

Premarket, Kaixin’s stock price has risen by 26% to $4.42 per share following Monday’s close at $3.50.