Kaixin Auto Holdings (KXIN) stock was up by 29.03% at $1.60 premarket, at the last check on December 16. The stock is striding big on the company’s announcement of an intention order of 10,000 EVs by Bujia.
In the previous trading session, the stock saw a loss of 1.59%, at its closing price of $1.24 per share. Currently, the stock is gaining big in the premarket, after the emergence of the news. At the time of writing the stock was heavily traded at 7.4 million shares in the premarket.
The subsidiaries of the China-based holding company, Kaixin Auto Holdings deal in used cars. Currently, the 143.46 million outstanding shares of KXIN trade at market capital of $180.76 million.
Partnership Agreement with Bujia
On December 16, KXIN announced entering into a strategic partnership agreement with Beijing Bujia International Logistics Limited. As per the agreement, Bujia will order a minimum of 10,000 new energy trucks from KXIN in the next five years. Further, this intention order will result in over $500 million.
China’s leading platform for automotive “Bujia” plans to establish 300 automotive logistics transfer warehouses. Moreover, it has also planned for 1000 terminal delivery centers over the next 5 years. Further, Bujia will accomplish this by integrating a fleet of about 60000 delivery trucks in its logistics operation.
KXIN’s New Strategic Plan
On December 01, the company announced a new energy vehicle strategic plan comprised of three components. In the initial stage, KXIN will expand the new energy vehicle team, and begin the development of medium-sized commercial new energy vehicles. Further, the three-year period (2022-2025) production and sales target are 50,000 new energy vehicles. Moreover, through mergers and acquisitions, the company will speed up its plan to become a leading new energy vehicle company.
Furthermore, it took over four months of careful discussions and reviews to formulate the new energy vehicle strategic plan. Finally, the company expects to begin adaptation of the new business model in 2022.
KXIN’s POCCO EV Sales
On November 15, the company announced the updated numbers and details of the POCCO electric vehicles sale. In August 2021, Henan Yujie Times Automobile Co., Ltd. signed a binding M&A term sheet with KXIN. According to the automobile company, POCCO EV sales volume reached 8,661 in the month of October. Out of these, DuoDuo model sales were 5,627 units and MeiMei 3,034 units. Subsequently, this showed a respective increase of 33.7% and 12.2% over September.
