Kandi Delivers A Sweet Year But Stock Goes 'Sour', Tesla Shocks On Downside, But That's 'OK'?
Summary
- --Tesla and Kandi are still the only two US-listed pure EV stock plays.
- --Both ended 2014 in the top 10 global EV list (top 4 when Hybrids are removed).
- --Both have brilliant, innovative founder/CEOs.
- --Kandi just reported an 80% YoY top line increase to $170 million.
- --Kandi reported 2014 net EPS increased from a $.61 2013 loss, to a positive $.29.
As many EV knowledgeable US investors know, there are only two US Exchange listed "pure play" EV stocks: Kandi Technologies (NASDAQ: KNDI ) and Tesla (NASDAQ: TSLA ). Considering that the EV sector is in its infancy, it's about the only new investment sector with a legitimate shot of being a trillion dollar industry over the next 10 years. Having only two listed stocks to choose from, particularly since both were in the top ten worldwide for 2014 EV sales (top 4 with hybrids excluded), should make investor research easy.
While the rest of the world's automakers could present EV competition and add considerably to the trillion dollar size, they are not a good investment nor a pure play investment for a myriad of obvious reasons. I dare make the brash statement that the EV industry could reach the trillion dollar level simply based on Elon Musk's recent statement that TSLA alone should have a $750 billion market cap by 2025.
While I make no qualms about being the closest thing Kandi has, at being a "Western" based expert on the company and its business (due to two personal visits to the company in China, almost eight years of following the company, and an estimated 10,000 hours of research and due diligence), I cannot make a similar claim to knowing Tesla.
However, while I am no Tesla expert, I have spent a substantial amount of time reading hundreds of Tesla media articles, company filings and attending several of its conference calls. I have even published three past Seeking Alpha articles going back to 2011, highlighting the amazing similarities of these two totally non-competitive companies along with their brilliant innovative CEOs. My take? If, in some parallel universe, the two founding CEOs of these companies swapped positions, both companies would still be in their respective leadership EV positions, now and ten years from now, but I suspect Kandi would have the higher market cap ...
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