Kandi Technologies Group Inc. (NASDAQ: KNDI) shares jumped on Wednesday on news that the company received an update from the U.S. Environmental Protection Agency (EPA).
Specifically, Kandi Tech received the required clearance from the EPA for its two electric vehicle (EV) models, the K23 and K27. The company first announced its two vehicle models in July 2020, with the mission of making EVs accessible to all.
The firm’s electric vehicles can officially enter the US market after receiving certificates of conformity from the EPA.
As it stands now, this EPA approval unlocks incentives from many states, which offer different tax incentives to EV buyers.
The K27, Kandi’s smaller model, has a manufacturer’s suggested retail price (MSRP) of $17,499 and the SUV-style, K23, starts at $27,499. With the federal tax incentives, eligible buyers can preorder the K27 for $9,999. Also factoring in federal tax incentives, the K23’s price drops to $19,999, and additional state tax credits could further reduce the price to as low as $15,999.
Although Kandi Tech is not a household name, it operates via a subsidiary, SC Autosports, which does business under the name Kandi America. Accordingly, Kandi America is primarily engaged in the wholesale of off-road vehicle products and distribution of EVs.
Management noted that by way of this final certification requirement, the firm officially can bring to market “America’s most affordable electric vehicles.” The firm is currently in the process of finalizing its fulfillment plans and expects to see its EVs on U.S. roads very soon.
Kandi Tech stock traded up about 24% to $8.62 on Wednesday, in a 52-week range of $2.17 to $17.40. The consensus price target is $12.00.