Kandi Technologies (KNDI) had a 17% decline in sales for the third quarter as demand for electric car parts and all-terrain vehicles fell. But the Chinese electric car manufacturer, with a history of bookkeeping losses, recorded an adjusted profit per share. The Kandi stock fell.
Kandi, which unveiled an all-electric SUV last year, earned 23 cents on a share in the third quarter, and fluctuated from a year ago loss of 10 cents per share, after four straight quarters in red. Revenue fell 17% to $ 32 million in the quarter, including a 19% fall in parts for electric vehicles and a 2% fall in off-road vehicle sales.
Chairman and Chief Executive Officer Hu Xiaoming called Kandy's financial results for the first nine months of 2019 "unsatisfactory due to the adverse effect of the Company's equity adjustment and the corresponding changes in business operations."
He added that reorganization efforts and riddle partnerships now lead to new growth opportunities. Kandi has restructured its electric car joint venture with top Chinese automaker Geely Group.
Kandi Stock Continues To Team
The Kandi stock lost 1.6% to 4.75 in the stock market today, still below the 50-day line. The second Chinese EV manufacturer BYD (BYDDF) lost 0.8%, even during the 50-day period. Nine (NIO) jumped 7% on Tuesday. Nine, once viewed as Tesla in China, trades near $ 2 per share, having lost more than 80% of its value since February, as analysts begin to question whether the company will survive.
The Kandi stock reached a peak of 9.23 on February 22. after winning federal approval to export two electric vehicles to the United States. The relative strength line is back near December 2018, within a long-term decline, MarketSmith analysis shows.
Among other car shares, Tesla (TSLA) rose 0.7% on Tuesday. General Motors (GM) and Ford Motor (F) also advanced a fraction.
Bloomberg reported on Friday that China could further reduce subsidies for electric cars to produce car manufacturers to compete on their own. An earlier move in June that halved subsidies triggered a sharp drop in sales and hurt the shares of Chinese EV manufacturers.
Volkswagen, Tesla, General Motors (GM) and Ford Motor (F) also lose as they invest heavily in electric cars. Volkswagen and Tesla recently started production at only EV factories in Shanghai.
China started the EV grant program in 2009 and has continuously shrunk it.
YOU CAN ALSO LIKE:
Ferrari Stock Becomes Turbocharged Among Growing Pool Of Uber Enrichment
Is Tesla Making a Buy?
Best Growth Stocks to Buy and See: See Updates to IBD Stock Lists
Check out IBD's new IBD Live Panel Discussion
Find The Latest Stocks Hitting Buy zones with MarketSmith