KNDI pros and cons
Pros:
- KNDI is cheap, with a market cap close to its working capital (297.3 million dollars as of June 30, 2021). Yahoo Finance currently shows a market cap of 346.908 million and a stock price of 4.57.
- KNDI has a growing business supplying hoverboard parts to DGL Group
- It looks like KNDI is starting to have some success selling electric golf carts
- KNDI has proven that it can design and build electric vehicles
Cons:
- The K23 and K27 NEVs are impractical and the K32 UTV might be too expensive for the UTV niche and not practical for the typical pickup truck buyer
- Kandi's handling of K23 and K27 normal speed EV launch has damaged its brand. Some people have put down deposits for these vehicles more than a year ago and are still waiting for news. Kandi needs to do a better job of communicating its progress in getting DOT approval for its vehicles rather than leaving buyers in limbo.
- At this point, I am left with the impression that while Kandi is capable of manufacturing electric vehicles suitable for use in China, it seems to be having a lot of difficulty overcoming the obstacle of getting DOT approval in the U.S. to allow its vehicles to be driven faster than 25 mph on roads.
I think Kandi ultimately will survive as a manufacturer of hoverboard parts and golf carts, but I am pessimistic about the future performance of the stock because Kandi can burn through a lot of capital through unsuccessful efforts to launch more ambitious vehicles in the U.S. I think Kandi might be worth a look in the future if can demonstrate that it can obtain DOT approval to allow its vehicles to be driven faster than 25 mph on roads. Right now, I think Kandi is just a gamble. KNDI would jump on news of DOT approval, but it's hard to guess when or if that might happen.
