Kaixin Auto Holdings (NASDAQ: KXIN) stock jumped around 16% with the opening of Thursday’s market; consolidating slightly on premarket gains of up to 21%. The bullish surge follows an announcement regarding a strategic partnership with Beijing-based company Shencheng Biotechnology for 10,000 customized new energy trucks, spread over the next 5 years.Â
At a total value of $250M, it isn’t particularly surprising that buyers were so active this morning. The transaction is a signature of a new energy shift; whereby Kaixin should be able to capitalize if they focus on the correct markets. Shencheng is a prominent name in environmental sustainability – making a name for themselves through impressive waste disposal and resource reuse integration schemes across China. The order for 10,000 trucks is the companies latest move towards eco-centricity.Â
Mr. Mingjun Lin, Chairman, and CEO of Kaixin, stated: “This is another major breakthrough of Kaixin in the new energy vehicle business. We will accelerate investment and product development and strive to release prototypes in the first half of 2022 and to achieve mass production and delivery as soon as possible.”
Kaixin Holdings is still up 11.35%, and trading around a price of around $1.57. KXIN stock is down 60% for the year.Â