Kandi Technologies Group Inc. (NASDAQ: KNDI) is officially throwing its hat in the electric vehicle (EV) ring, after it received approval from the U.S. National Highway Traffic Safety Administration (NHTSA) for two purely electric vehicle models.
The two vehicles that were approved were the Model EX3 and Model K22. This is another significant milestone, after qualifying for a $7,500 U.S. Federal tax credit in October 2018.
The NHTSA approval is an assurance that Kandi’s two EV models conform to NHTSA standards and are registered in the United States. The firm now will begin the process of launching the Model EX 3 and Model K22 for the American market.
In an interview with Bloomberg in January, Hu Xiaoming, board chair and CEO of Kandi, detailed that its K22 Model would be offered in the United States for less than $20,000.
Comparatively, the Chevy Bolt, GM’s flagship EV, has a starting price of roughly $37,000. The Tesla Model 3 sedan starts at $49,000. Even the Smart ForTwo two-seater electric car has an approximate $25,000 starting price in the United States, not including rebates.
Xiaoming commented on the NHTSA approval:
We are thrilled. Kandi Model EX3 and Model K22 received approval from the NHTSA. The approval has demonstrated our EV models meet all the necessary requirements and standards of the U.S. government. With this, we are confident in introducing our reliable vehicles to the American public. We believe both the EX3 and K22 are competitive in price and quality with advanced tech features that are in demand by American consumers. We are confident that SC Autosports, our U.S. subsidiary, will have a successful launch and grow the EV market in addition to its powersports business.
Shares of Kandi Tech were last seen up about 32% at $7.85, with a 52-week range of $3.54 to $8.37. The stock has a consensus analyst price target of $4.59.