Kandi Technologies (KNDI) stock raced higher after the Chinese electric automaker announced it had won federal approval to export two electric vehicles to the U.S.
The National Highway Traffic Safety Administration approved its Model EX3 and Model K22 electric vehicles for importation and registration. Kandi promised to deliver its EX3 and K22 models at competitive price points, and with the advanced tech features popular among American consumers.
"The approval has demonstrated our EV models meet all the necessary requirements and standards of the U.S. government," Kandi Technologies CEO Hu Xiaoming said in a news release. "With this, we are confident in introducing our reliable vehicles to the American public."
Among other auto stocks, luxury electric vehicle maker Tesla (TSLA) was off 0.15%. General Motors (GM) climbed 0.9% and Ford (F) advanced 1.5%. Kandi's fellow Chinese electric vehicle maker Nio (NIO) climbed 6% to 7.70. Nio stock has gone sideways since it spiked sharply and plunged from its September IPO.
Kandi previously said it plans to offer the two-seater K22 mini electric vehicle, which has a low 83-mile range, for less than $20,000 in the U.S. This compares to a starting price of roughly $37,000 for GM's flagship EV, the Chevy Bolt. The Tesla Model 3 starts at about $45,000, with the long-promised $35,000 base model still elusive
The EX3 SUV has a battery range of 188 miles. Its price point is unclear, though it can sell for the equivalent of $14,000 in China. Tesla's Model X SUV has a starting price of roughly $97,000.
The NHTSA approval is Kandi's latest significant milestone. Back in October its electric vehicles qualified for a $7,500 U.S. federal tax credit.
Trade Tariffs Hit China Stocks
The U.S.-China trade spat has affected Chinese stocks. Many Chinese automakers, including Warren Buffett-backed BYD, have had setbacks in plans to expand to the U.S. as a result of trade and tariff tensions between the two nations.
However, Tesla broke ground Jan. 7 for a factory in Shanghai, its first outside the United States, despite trade tensions. A Chinese plant would expand Tesla's production capacity and let the company's electric vehicles avoid Chinese tariffs on auto imports.
Meanwhile, GM says it believes the future of cars will be all electric, and recently said luxury brand Cadillac will be its new focus for electric vehicles. GM and several European automakers are trying to move into Tesla's luxury EV space vs. prior efforts on low-end electric vehicles.
Ford is betting on both hybrid cars as well as electric vehicles.
Ford plans to spend $11 billion on electrified vehicles between now and 2022. GM said in November it's doubling investments in EVs and self-driving cars without specifying a figure.
