Kandi Technologies (KNDI), the Chinese electric-car rival to Nio (NIO) and Li Auto (LI), said it is looking for a North American plant after U.S. sales launched. Kandi stock fell.
XOn Thursday, the company said it's in early talks with potential manufacturing partners, including local agencies along the U.S.-Mexico border.
"Over the near term, we are confident we can meet the growing North American demand with our existing manufacturing facilities in China," said CEO Hu Xiaoming in a statement. "Longer term, however, we are actively exploring the possibility of manufacturing EVs and off the road vehicles locally, as we plan to more aggressively target the fast growing North American market."
On Wednesday, Kandi announced underwhelming preorders a day after its affordable electric cars went on sale in the U.S. The EV maker booked 436 preorders from nearly 11,000 potential buyers who registered for Tuesday's Kandi's virtual event launching its K27 and K23 electric vehicles.
Both are four-door compact cars. The Kandi K23 offers a 188-mile range and the Kandi K27 a 100-mile range. They start at $29,999 and $20,499, respectively, before incentives.
But prior to the event, Kandi offered special promotional pricing for the first 1,000 preorders of each model. After the lower promotional pricing and the $7,500 federal tax credit, the K27 costs $9,999 and the K23 $19,999, making them the cheapest electric cars in the country.
Preorders require a fully refundable $100 deposit.
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Kandi Stock
Shares fell 7% to 7.48 on the stock market today, after diving 9% Wednesday on the disappointing preorder numbers.
Kandi stock initially soared 76% on news of the virtual event earlier this month. Among other Chinese electric-car stocks, Nio fell 2% Thursday and Li Auto dipped 1.9%.
Last February, Kandi stock jumped after the company received U.S. approval to sell two electric cars in the country.
Find Aparna Narayanan on Twitter at @IBD_ANarayanan.
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