Autos

Tesla Gets a New Low-Cost US Electric Car From China to Compete Against

China-based automaker Kandi Technologies Group Inc. (NASDAQ: KNDI) saw shares more than double on Wednesday following the announcement that the company will begin selling two all-electric vehicles (EVs) in the United States later this year. It’s not so much that the company is going to be selling the EVs, but the price at which they plan to sell them.

With an average new car price in the United States that has pushed past $35,000, the Kandi K27 and K23 come with price tags of $12,999 and $22,499, respectively. The price includes the $7,500 U.S. federal tax credit for EVs.

When the Yugoslavia-built Yugo was introduced in the United States in 1987, the car carried a sticker price of $3,990 when the average price of a new car was $13,383. A Yugo cost 70% less than that.

According to Kelley Blue Book, the average price of a new car in the United States in 2020 is $37,851. The Kandi K27 (including the tax credit) costs about 66% less than an average car.

The compact K27 sedan is said to seat four and has a driving range of 100 miles from its 17.69 kWh lithium battery. The (somewhat) larger K23 also seats four and has more cargo space. The vehicle’s 41.4 kWh lithium battery is rated for 180 miles on a full charge.

GM’s Chevy Bolt has an MSRP of $37,495 for a similarly sized vehicle with a range of 259 miles. The federal tax credit reached its mandated limit in March of this year and is no longer available.

Just over three years ago, in March of 2017, Kandi reported a revenue jump of 90% year-over-year and adjusted net income that grew by 260% to around $51 million. The stock traded at around $4.25 a share. Since then Kandi’s shares have more than doubled, including Wednesday’s huge jump.

At the time, Tesla Inc. (NASDAQ: TSLA) stock traded at around $235 a share. Tesla shares traded near $1,500 late Wednesday, a gain of about 500% since March of 2017 while Kandi’s stock traded at around $9.22 after reaching a new 52-week high of $9.41, a gain of 143% for the day. The stock’s 52-week low is $2.17.