Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
On Thursday, Kandi Technologies Group (NASDAQ: KNDI) announced that one of its subsidiaries, Kandi Electric Vehicles, signed a contract to sell 3,000 Model K23 electric cars operating company in its ride-sharing alliance.
The vehicles will be deployed in the rideshare market by operator Zhejiang Ruiheng Technology Company, with the sale being part of Kandi’s rideshare development programme with its goal to produce 300,000 government accredited pure EV's within 5 years.
The company has come under fire from investors recently with doubts about its weak fundamentals and worries that a potential US launch will not be successful.
However, the companies chairman and chief executive, Hu Xiaoming is confident in the Chinese rideshare market and Kandi’s rideshare development programme, stating: “After a lengthy process of preparation that demonstrated the commitment of many parties, our rideshare development program is now getting off the ground.
“We completed a successful trial in Shaoxing and are now ready to start shipments to the local operator as it starts its official launch. We are excited to soon ship our model K23 outfitted with our proprietary battery swap system.”
“We are confident that the sales of our K23 model will accelerate the growth of Kandi's whole EV value chain business,” added Xiaoming.
Kandi’s shares rose to highs of $10.98 after the open on Thursday, a level last seen at the end of November 2020. They are now trading at $9.45, up 1.50%.
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