Kandi Technolgies Corp (KNDI)

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Tesla Compatible? China May Invest In E-Car Charging

By MICHAEL KREY, INVESTOR'S BUSINESS DAILY
Posted 11:16 AM ET



China's government might provide as much as $16 billion to build electric-car charging stations, looking to spur demand for e-cars as the nation fights its pollution problem, Bloomberg News reported Tuesday, citing two unnamed people familiar with the matter.

Bloomberg said that it's uncertain if the stations will be compatible with cars made by U.S.-based Tesla Motors (NASDAQ:TSLA), which is building "Supercharger" stations worldwide to spark sales of its all-electric vehicles.

Tesla stock hasn't reacted to the report. It's flat in morning trading in the stock market today.

Kandi Technologies Group (NASDAQ:KNDI), the China-based maker of all-electric cars, would be a big beneficiary of such a program. Kandi Tech stock was up nearly 7% in morning trading in the U.S., near 20.

Development of charging station networks is a key to the emerging e-car industry. Tesla proclaimed a Supercharger milestone for June, saying that its Supercharger network delivered more than 1 gigawatt hours of energy to Model S vehicles that month. That energy accounts for a collective 3.7 million miles driven, 168,000 gallons of gas saved, and 4.2 million pounds of carbon dioxide offset, the company said.

Tesla started shipping Model S electric cars in China in April. In July, Tesla delivered its first Model S to Hong Kong and unveiled its first two Supercharger sites there, saying that they were its most advanced stations and would be "followed by a series of Supercharging locations throughout Hong Kong, allowing Model S owners to charge for free."

In posting better-than-expected Q2 earnings on July 31, Tesla said that it expects to produce 35,000 cars this year and to make cars at an annual run rate of 100,000 by the end of 2015.

Deutsche Bank recently predicted that Tesla would be making 1 million cars per year by 2025.

Tesla stock, trading near 263 early Tuesday, is up 75% this year. It is an IBD Leaderboard stock, most recently breaking out Aug. 6 at 244.59, so it's 7.5% extended.

Read More At Investor's Business Daily: http://news.investors.com/technology/082614-714779-china-reportedly-plans-major-electric-car-charging-effort.htm#ixzz3BVtUAoLs
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