Kandi Technologies (NASDAQ:KNDI) stock is soaring more than 20% on Wednesday following the news that a company’s key electric vehicle project with a carmaker has garnered approval.
The Jinhua, China-based company said on hump day that its joint venture automaker Geely has received approval from the Jiangsu Development and Reform Commission in regards to the company’s annual capacity of 50,000 pure electric vehicles project. The move marks a milestone for Kandi Technologies, according to it.
The approval was given to the company as long as it follows the provisions of Announcement No. 22, which dictates the regulations on the administration of the investment in the automobile industry. “Kandi Jiangsu’s EV Project application was assigned to the Jiangsu Provincial Development and Reform Commission to review and approve,” the press release read.
“This approval of Kandi’s EV Project marks a milestone for the Company,” according to Hu Xiaoming, chairman and CEO of Kandi Technologies. “In light of the positive outcome, this will be one of the many milestones in 2019 which will enhance Kandi’s brand value and competitiveness, and in turn, driving Kandi’s EV business growth to the next level.”
KNDI stock is soaring about 21.7% as of the end of trading on Wednesday afternoon. The stock was relatively unmoved after the bell on the day following the news, although expect some movement from the China-based company over the coming days in light of this development.