The shares of Chinese electric vehicle (EV) maker Kandi Technologies (NASDAQ:KNDI) are rallying today after the EV maker announced that it had begun “mass production of its lithium iron phosphate (‘LFP’) battery.” The trading volume of KNDI stock is much higher than normal so far today, and KNDI stock is sixth on Yahoo Finance’s list of trending tickers at the time of writing. Indeed, in late morning trading, shares jumped 10% to $3.68.
According to Kandi, its LFP battery is “one of the most advanced [batteries] on the global market.” The EV maker added that, in 2019, it launched its LFP battery with an “energy capacity 11% higher than the industry average.”
Kandi reported that the battery has received “high industry-wide ratings and positive feedback from customers.” Last month, the company’s subsidiary, Huiyi, was able to begin mass-producing the battery.
According to the EV maker, the “energy capacity” of the latest version of Kandi’s battery is 10% above that of the 2019 edition. Additionally, it “is 22% higher than the current industry average.”
Other Things to Know About KNDI Stock
Kandi’s shares have tumbled over 40% in the last six months, even after this morning’s rally. This comes amid widespread concerns about Chinese tech stocks following Beijing’s crackdown against some tech companies.
Furthermore, Kandi’s market capitalization is now down to less than $300 million, and its trailing price-to-sales ratio has fallen below three.
On Dec. 6, Kandi announced a new share buyback program for as much as $20 million. The program was slated to begin on Dec. 10. Therefore, it will likely finish by the conclusion of 2022.
In conjunction with the announcement of the buyback program, Kandi’s CEO, Hu Xiaoming, said in a statement that, “We believe that the market is not valuing Kandi appropriately, and that we are significantly undervalued at the current stock price. Most of our valuation is represented by our cash balance, and we believe that investors do not fully appreciate our exciting growth prospects across a wide range of electric motor propulsion categories.”
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.