Last Updated on November 5, 2022 by admin
Kaixin Auto stunned investors last week when it announced that it would begin selling electric vehicles in Europe and the United States. The news sent the company’s stock soaring by more than 400% in just two trading days. However, the euphoria was short-lived, as shares came crashing back down to earth on Tuesday after analysts raised doubts about Kaixin Auto’s ability to execute on its plans.
Kaixin Auto has been one of the hottest stocks on the Hong Kong exchange this year, rising nearly 1,400% since January on the back of strong demand for electric vehicles in China. However, many analysts believe that the company is overvalued and that its recent rally is not sustainable. So far this year, Kaixin Auto has only sold about 2,000 vehicles, which is a drop in the bucket compared to established automakers like Tesla and Volkswagen. In order for Kaixin Auto to achieve its goal of becoming a major international player, it will need to increase its production capacity dramatically and make significant inroads into key markets like Europe and the United States. Whether or not it can do so remains to be seen.
