Kaixin Auto Holdings (KXIN) Stock Rockets On Small EV Plans

Kaixin Auto Holdings (NASDAQ: KXIN) is screaming for the top in the premarket hours this morning, and for good reason. The company announced plans to move into the smaller size electric vehicle market in China. Here’s what’s going on:

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KXIN Stock Climbs On Small EV News

In the press release, Kaixin Auto Holdings said that it is planning to enter the smaller size EV market in China. The company’s new energy vehicle unit has launched development plans focused on smaller EV models in the subcompact and micro compact categories. 

The company said that it has discussed mergers and acquisitions with a number of electric car manufacturers to speed up the process. KXIN went on to say it will disclose the results of these discussions in a timely manner. 

As the Chinese economy emerges, automobiles have been shifting from a symbol of wealth and social status to having a fundamental role as a transportation tool in the country. 

KXIN said that the rapid development of electric vehicle technology has closed the technological gap to fuel vehicles and substantially lowered production costs, which has led to more consumption in terms of EVs. 

Moreover, the rise of the younger generation of consumers in Chinese cities who carry a preference for smaller vehicles has made smaller size electric cars a dark horse in the Chinese automobile segment. 

In fact, sales of subcompact and minicompact EVs are forecasted to reach 5 million units in 2025, making it one of the best-selling models in the Chinese auto market. 

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Final Thoughts

All told, the news issued by KXIN proved to be overwhelmingly positive. Electric vehicles are a major market in developed and emerging economies alike, and in China, that market is a massive one. 

With the company’s willingness to shift with consumer demands and create models tailored to what younger consumers want, there’s quite a bit to look forward to when it comes to the future of KXIN stock. 

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