1. EV technology, one way or another, is happening in China. Forget about the US adoption challenges, lobbyists, range anxiety, etc. and trying to personalize your rational. China is different. Government gets it done. It took five years to switch from gas scooters to 100% electric scooters. It's consumer demand (even though their is huge demand) it a govt. demand that drives adoption. Restrictions on ICE vehicle registration, huge subsidies, etc. speaks to this "get it done" mentality. Kandi, favored by the government, is arguably first in line among many EV manufactures, to help facilitate the change.
2. President Hu is not a car guy trying to appeal to or connect with government. He is a government guy who lead EV scientific research for policy makers before becoming a car guy. Read his bio. A Chinese equivalent of Jobs and Musk—without the ego or charisma. In fact, as a nod to his integrity, he donated (i.e. not for any cash) all of his patents to Kandi including his quick exchange "side slide" battery technology that will likely become one of the charging standards in China. Note: The revenue to Kandi in licensing this technology has yet to be debated or estimated.
3. Sam Walton believed you succeed by offering basic needs at a price point the masses can most afford. This is how or to whom Kandi is positioned. Not to knock Telsa or companies like Buffet's BYD. There is great upside in China for every tier. Kndi just happens to serve the Sam Walton audience best.
4. The leasing program is a sleeping giant. While the CarShare program is in the spotlight, leasing heavily subsidized cars is coming up next. While an order of 20,000 cars is yet to be delivered the State Grid has been very active in rolling out QBEX (quick exchange) stations in preparation. The thinking is to have enough stations to create a positive consumer experience (i.e. no range anxiety) as part of widespread Hangzhou launch. Fair enough...and all in good time.
5. Do your own DD:)
The government (naturally, like any government) will try to financially capitalize on EV expansion.
However, in China the government has their public policy neck on the line as well.........
They simply must do something about health and air standards
Just do an image search with CHINA SMOG and you will see what I am talking about -
KNDI is therefore quickly becoming a household name in China
This is China man wake ip .If it was so great huge players like bill gates google an tons of other geniuses would be in an the word would be out .You got a huge spike form a delayed video an someone dumped on your party an you still pjmping about a month to late.
"pjmping"? Use your fingers Gary—and if you are using them, use your brain. Yes, this is China and I am impressed you have done enough DD to realize this. The word IS out. Pollution ain't going away. Conjestion is a problem. Emerging market of tens of millions is desiring of car versus bike transportation. Kandi with government support (subsidies/ICE restrictions), State Grid relationship, partnership with Geely, multiple revenue streams (legacy business, LLP, and Car Share), patent technology (yes, for what's that's worth in China;), etc., has potential to be a major player. The first two garages have confirmed consumer demand (expansion coming to cities beyond Shanghai and Beijing in 2014), manufacturing facilities are complete and ramping up (hiring reports) leasing will happen soon (waiting on QBEX station update)...I am not trader and nobody has dumped on my party. I am investor and weekly movements, like your imbecile comments, are just noise. Keep "pjmping" your BLDP stock that you recommended about a month back to this board—off about 50% since your recco. I challenge you to add something of substance to the conversation—and, please, use your fingers Gary. Your sense is hard enough to understand and your almost comical grammar doesn't help.
Well thought out big picture ideas on KNDI. I do believe the potential of a long term winner is here. However, with the LLP on hold for now, I see the importance of infrastructure build out paramount. The building of garages, QBEX stations etc. are directly proportional to the success and acceptance of the programs. Of all my DD on KNDI, this is the information I find lacking the most. Here are some thoughts/questions on the matter:
1. Is there a government time table available on the build out of the garages, deadlines to be met etc? What is the status of the QBEX stations build out..how many to date…how many projected…how many do they need to implement LLP successfully? Are QBEX stations just for CarShare or also for Leasing Program eventually?
2. Who purchased the 2800 projected sales in Q4? If the CarShare program purchased these Evs, where are they going to put them if only 2 garages are completed that only house 38 vehicles each? Are the sales "paid for" in Q4, to be realized to bottom line?
3. CC in Dec suggested 50 completed by Q1 end? Is there a roadmap here to confirm that this will happen? (Hate to see what happens tops if they do not meet their own stated goals.)
4. It seems many wonder why they are not selling the EV out right to the public and let them charge at home. When this question was asked at the CC (the last one), the answer was not an answer but a hedge. Why are they not selling directly to the public? Im just guessing here but lets say the first 50 garages average 100 cars each. Thats 5K cars. The JV can produce 130K cars annually if I recall correctly. Disconnect here?
Anyway, just my thoughts off the top of my head. Still I would like to see INFRASTRUCTURE news as that is what is most important to me. If you have any links etc, I would love to see. GLTA.
Spade, great questions.
As some for of response, much of which is covered in scattered but thorough detail on the private board with links, pictures, etc.
1. Don't believe there is a published timetable. The State Grid doesn't have to answer to shareholders. Politically, it has been suggest and I believe it to be true, that private companies working with government entities, leave the "PR" up to government entity. They make the announcements;) This being said, there is evidence of QBEX stations being built. In fact, the private board has been plotting these locations as they hear about them from news sources and boots on the ground. The thinking is to have enough of a network of QBEX stations to ensure that the consumer has a positive experience and that there is positive adoption. Smart strategy imo. It's China, you can bet there is no heel dragging on this initiative or shortage of budget to meet whatever timeline they have in place. By the way QBEX stations are already functional and serving taxi's, etc. I believe that the CarShare towers will have a QBEX station onsite. Not sure if this is exclusively for the rentals or for private LLP drivers.
2. Believe this was to provide, mainly, the towers being built. If each tower holds 100-300 cars (I suspect most are 100 with the Geely HQ tower holding 300) this is how I arrived at 27 garages by end of Q1.
3. As I said in a previous post, I believe 50 is ambitious. But, to be candid, I don't care what the number is just as long as there is progress being made. The first turns of a wheel are the hardest. The wheel is turning and soon it will be rolling faster, and faster, and faster still.
4. The towers, over time, have tremendous sales revenue. LLP versus ICE ownership.
There are plenty of articles addressing the speeding up of the QBEX infrastructure. I have read them over the past two or three weeks. I noticed you are on the private message board. Keep reading the articles they update from China. I cannot go back and find them for you but the China State Grid is also involved in speeding up of the process and with 1.2 million people employed with them I think they will. Like any stock - it is better to get in early - if what you says is confirmed - do you think the stock PPS stays at 12 or more likely goes to 16/18 with in a week?
If you have a hold you are saying to others to buy "after the news". The stock PPS goes crazy with news as this week showed - better to get the 50% move up rather than wait for confirmation. You miss the crazy jump up as they continue to confirm their long term plans.
I have visited Hangzhou (and other cities) on business. I have LinkedIn connections in Hangzhou (connected with the EV industry)...and I read Chinese media articles. BUT, mostly, I find the best info on the private KNDI Yahoo boards. Well moderated. Objective contributors with good insights...and awesome catalogs of reference links dating back to 2007 on independent news articles, releases, SECs, photos, videos—all the stuff to draw from. I read the message boards and follow the stocktwits to get a feel of investor sentiment and, sometimes, find something that I have not yet heard about. But honestly, these two channels are mostly filled with speculators (pumpers and shorts) that offer no substance or clarity and are just trying to fuel uncertainty and hope so that their short term positions are met with volatility and emotion selling/buying. There is always risk in any investment. But in my opinion the potential vastly outweighs the risk. There is too much in terms of business model, relationships, transformative technology, China's pollution/congestion issues, an emerging middle class looking to get off a bike and into an entry level car, etc. to ignore. I have been long since $3...but believe that the PPS today will seem unbelievable to investors in a year or two. But, do your own DD and don't take it from me, or the many posters on this board.