Kandi Technologies (KNDI) reported a 17% decline in the third quarter as demand for electric and off-road vehicle parts declined. But the Chinese manufacturer of electric cars with a history of posting losses registered adjusted earnings per share. Kandi's shares have fallen.
Kandi, which presented an all-electric SUV last year, gained 23 cents a share in Q3, shaking from a loss of 10 cents a share after four straight quarters of red. Revenue fell 17% to $ 32 million in the quarter, including a 19% drop in electric car parts and a 2% drop in heavy vehicle sales.
Chairman and CEO Hu Xiaoming called Kandy's financial results for the first nine months of 2019 "unsatisfactory due to the adverse impact resulting from the affiliate's capital adjustment and the corresponding changes in its business operations."
added reorganization efforts and ride-sharing partnerships that lead to new growth opportunities. Kandi restructures its electric car joint venture with top Chinese manufacturer Geely Group.
Kandi's stocks continue to lag
Kandi's stock lost 1.6% to 4.75 on the stock market today, still below the 50-day low. Chinese manufacturer of EV EV BYD (BYDDF) lost 0.8%, also below the 50-day high. Nio (NIO) jumped 7% on Tuesday. Nio, once considered China's Tesla, is trading close to $ 2 a share, losing more than 80% of its value since February after analysts questioned whether the company would survive.
Kandi's stock peaked on February 9,23 on February 22 after gaining federal approval to export two electric vehicles to the United States. The relative strength line returns near December 2018 levels, within a long-term decline, MarketSmith analysis shows.
Among other automotive stocks, Tesla (TSLA) rose 0.7% on Tuesday. General Motors (GM) and Ford Motor (F) also advanced.
On Friday, Bloomberg announced that China could further reduce subsidies for electric cars to manufacturers of car manufacturers on their own. The previous move in June cut subsidies by half, causing a sharp drop in sales and damaging the shares of Chinese EV manufacturers.
Volkswagen, Tesla, General Motors (GM) and Ford Motor (F) are also able to lose as they invest heavily in electric cars. Recently, Volkswagen and Tesla started production at the EV factory in Shanghai alone.
China launched the EV subsidy program in 2009 and has steadily shrunk it.
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