It's not my piece,
I copied pasted from an analyst who posted on I-Hub.
Many there who have actually been to China where here in the states analysts are frowning on reporting. It's a conflict in some case I believe to our own US manufactures who are publicly traded in Stock Exchange. They fail to engage in promoting China's growing auto concerns as well as the effects of dangerous emissions. China is rewarding their own manufactures with the subsidies which has created a firestorm of popularity in EVs. Green is in and Kandi is ahead of the game with car share program.
The projections given in the article are for the 100,000 capacity JV Changxing China EV facility that only makes the 2dr SMA7000 projected to produce 15-20,000 EV’s for 2015, 30,000 for 2016 and 50,000 2017. The average sales price without the battery runs around $16,100(USD). Add around $5400 for the battery and you get the $21,150 average price reported earlier by the Company in prior Pr’s. So if reached, total sales per year would be around $323 mill to $430 mil 2015, $645 mil 2016 and $1.075 bil 2017 at the target levels.
Again, this announcement is from only ONE of four 100,000 capacity KNDI facilites making the smallest EV. The Shanghai facility which also has a 100,000 capacity exclusively making the 4 door will likely match the Changxing sales in units but at the currently higher reported price of $23,500 per car, or $353 mill to $470 mil for 2015, $705 mil 2016 and $1.175 bil for 2017.
KNDI also has 30,000 current capacity in its Jinhua facility. In just the last six months, the Company has already announced it will put a minimum of four new EV’s into production this year. It has been announce by the Company at the 2014 Annual Meeting that the two new 100,000 capacity Facilities in Rugeo and Wanning China will be operational in 2015. These other facilities will likely be making the new EV’s which are higher priced with the top being the Geely Converted “Luxury” E7 EV for Government and Fleet sales which is expected to sell for around $38,000.
With this China announcement today, I stand by my 2015 Estimate that JV revenues will reach $1 billion for this year up from $230 million for 2014. KNDI independent of the JV will be generating parts and battery sales of approximately 65% of JV sales or around $650 million PLUS it will receive 50% of the JV profits. So I expect KNDI to earn in excess of $2.50 a share for 2015
I agree 100% with David. The Market looks for companies like Kandi to create doubt in investors minds and this allows Shorts to earn short term respect and profits. It's the suprise bomb shell PR that will boost Kandi to all new highs. That PR will be the release of record sales in the coming Qs. Any positive earning puts Shorts at risk for a +$ 4.00 - $10.00 movement if you follow past charts. Now factor in the first positive Quarter and you now get multiples of 4x to 8x earnimngs!
By ER the news will have hit and sales of Kandi for 4th Q ending 2014 along with record revenues will eliminate all shorts in about ten days. That's how many days it will take to cover Y A!
Many traders believe that Market-Makers (MMs) will "signal" moves in advance buy using small amounts of buys or sells as "signals". The "signals" are from one MM to another.
100 I need shares.
200 I need shares badly, but do not take the stock down.
300 Take (or I am taking) the price down so I can load shares
400 Keep trading it sideways.
500 Gap the stock
Altisource Portfolio Solutions S.A. (ASPS) -NasdaqGS Watchlist
31.79 Up 13.42(73.05%) 12:32PM EST - Nasdaq Real Time Price
When Q is released and subsidies accounted for plus new plat opening and an actual figure for production in 2015, ROCKET!
While the Chinese government has set an ambitious target of having 5 million new energy vehicles (including hybrids, fuel cell vehicles, PHEVs and BEVs) on the roads by 2020, according to the China Daily, only 70,000 are presently in use.
China has announced it will discount electric vehicles (EVs) and other “new energy” cars from purchase tax, which currently stands at 10% of the net value of the car.
All buyers of electric vehicles will be free of paying the levy from September to the end of 2017. This new incentive is one of a number of measures put in place by the Chinese government to push EVs into the mainstream.
nterestingly, Tesla Motors are still contemplating which Chinese company to partner with; a decision likely to be made by the end of 2014. Tesla’s leading technology and ambition, supplemented by these new government incentives could be the catalyst China has been seeking to spark an electric revolution.
Yes, it's as though the Government is advertising for Kandi! I've never seen anything quite like it but it's one step further in Kandi becoming a world leader in EV manufacturing.
Very good points. If indeed they are being sought after by all the other cities that have mandates to buy EVs and now have a finished product ready to build it's going to accelerate growth faster than ever!
Most approved cities have yet to come on board with the government mandate of reduced emissions and alternative vehicles such as EVs. If there are 88 approved cities and only one is acting does this mean many others are in the pipeline? C'mon it's clear that Hu is in with China government.
Government Endorsement & Incentives
Kandi Car-Share has been endorsed formally and publicly by the highest levels of the Chinese gov't, with the MIIT Minister Wan Gang saying in a widely disseminated speech that Kandi car-share is recognized as a critical component of the Chinese public transportation system. He also promised further infrastructure support from the PRC gov't in the near future.
It was a not-too-subtle nudge directed at the provincial officials who haven’t met their electric vehicle quotas yet, which is one of the 5 priorities of the current 5-Year Plan. More than half of the 88 EV-authorized cities had already contacted Kandi before Minister Wan’s endorsement, which was already above and beyond the existing government policies designed to incentivize consumers to buy and use electric vehicles, such as the 10% sales tax waiver, free unlimited parking for EV’s, and restrictions on license plates and city access for non-EVs.
Car Share Program
Kandi has no competition yet, and can make strong demands of local governments which have a mandate to do business with them. Kandi has at least a 2-year head start on all possible competitors, and will have signed agreements with almost every metropolitan area in China before anyone else can organize a similar business, much less test and debug it as Kandi already has.
Not sure what your highest level of education might be but I'd take these few paragraphs very serious!!!
I think aza is correct in one stand point that this surprise may have had a bigger effect if was released when they were in production. This type of manufacturing requires an assembly line to change it's normal build and can costly if it's a one time product. Now what would seal investors confidence is forward looking potential orders from Mr. Hu or certain plants that can handle custom style builds leading those to believe this is ongoing for Kandi. Hu is smart but sometimes He fails to grab the readers attention or in this case the investor until it's a bit too late.
Elon Musk took the stage Tuesday at the Detroit Auto Show, speaking at the Automotive News World Congress at the Renaissance Center in Downtown Detroit.
He dropped a bomb right away when he said that Tesla sales are down in China for the fourth quarter of 2014.
That sent Tesla stock into a tailspin after-hours, down 6% to $192.
The problem, according to Musk, is perception: potential Chinese customers don't think China's charging network is sufficiently built-out to ensure that the cars can cover significant distances. He said that perception has been dealt with.
In fact, the Chinese charging network is slated to expand, but it's currently not nearly as extensive as what Tesla has in the US and Europe.
If China doesn't adopt Evs soon and ban gas emissions they won't have a need for any vehicles period the country will be toxic beyond livable and disease ridden!
By Bonnie Cao Jan 13, 2015 8:32 AM PT 0 Comments Email Print
China’s Ministry of Finance will reduce subsidies for “traditional” vehicles as part of government efforts to boost development and sales of renewable-energy cars, Caixin reported.
The government will also “improve” fuel-subsidy policy for buses this year, Caixin said on its website on Jan. 13, citing Zeng Xiaoan, head of the ministry’s economic development department, who spoke at an electric-car forum.
The change will also build on efforts by China, the world’s biggest carbon emitter, to fight pollution and cultivate the local electric-vehicle industry, which includes BYD Co. (1211), which makes electric and hybrid cars and buses.
The nation will accelerate building EV charging facilities, Caixin said. Chinese consumers have been reluctant to switch to EVs because of reliability concerns and a lack of charging infrastructure.
R&D investment in EV is enormous, but both Kandi and Xin Dayang are still in the early stages. However, by combining their expertise, I believe they can strengthen their capability in R&D and accelerate EV development to compete globally.
China has a little different mind set in that they will share a common goal of equity in destroying out side competitors in EV market share by secretly working together. Love it!
by them. If an announcement of a public transportation vehicle used in China is released and it's a Kandi EV you can forget ever being below $20.00 again. If Mr. Hu is granted a contract by the Chinese government to produce any style buses capable of carrying 8,10,12, passengers much like the US is doing with natural gas transportation and receives subsidies this is a GOLD MINE! Can't wait to see the first model and if it's scale-able into larger sizes!
KNDI will certainly be recognized by all at that point.
Absolutely correct, Chinese supporting their own and eventually Alibaba will incorporate EVs into their business. Partnering with Kandi, a local company also shows the Government their willingness to support the countries decision to help clean up China's growing emissions problems, a HUGE pet peeve of Jack Ma.
The car costs will better as well spotlighting EV's over gas and the ranges that batteries can now produce. Mr. Ma is smart and will will use his advertisement connections to make Kandi a household name while again supporting fellow Chinese businesses.
I just picked up another 825 and will add every opportunity.
China's willing to spend 44 BILLION US dollars to clean up the emissions problems over next 5 years!
Averages out to a million EVs a year for 5 years compared to just a few thousand last year. Kandi STRONG!!
Maintaining subsidies will help China reach the goal of putting half a million "new-energy vehicles"--including battery electrics, plug-in hybrids, and hydrogen-fuel cell vehicles--on the road by 2015, and 5 million by 2020.
China is now forcing those who pollute to pay hefty fines for old vehicles that violate emissions . EV companies are now able to double the MPC miles per charge and manufactures that recieve subsidies are being rewarded. Many of the sales subsidies have yet to be recognized by the manufacturer but should be reporting those receivables this Q. Kandi stands to benefit greatly for an additional 6 years while Gov. back subsidies continue!