The stock of Kaixin Auto Holdings (KXIN) gained significantly in the pre-market after the company announced in a press release that they have signed an order of 10,000 Electric Vehicles. The stock valued at $1.65 at the time of this writing gaining more than 33.06% from the previously closed value. At the end of the last trading session the stock closed at $1.24. The volume of the stock traded in the last trading session was approximately 421.09K shares.
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Reason of the stock gain:
On 16th December, 2021 Kaixin Auto Holdings (KXIN) announced in press release that they have signed an agreement of strategic partnership with Beijing Bujia International Logistics Limited (Bujia). Bujia greed too order minimum 10,000 new energy trucks in the upcoming 5 years from Kaixin Auto. The agreement is worth at approximately $500 million.
Bujia is the leading automotive new retail logistics and service terminals platform provider of China. 300 new automotive logistics transfer warehouses and 1,000 automotive terminal delivery centers are palnned by the company over the course of next 5 years. The logistics operations will be performed by the fleet of more than 60,000 delivery trucks among which at least 30% will consist of energy trucks.
This deal is expected to bring more opportunities for both the companies in terms of expanding in the new market and speeding up their operations. Kaixin Auto Holdings (KXIN) states that it’s their first major sale which boosts their confidence to explore more about the energy vehicles. This will help them to expand their R&D and bring more innovation in their technology.
Effect on the stock:
The stock of the company skyrocketed after the news hit the market. The investors responded positively to the new development in the company’s business of achieving a biggest sale in their history and showed interest in investing in its stock.
Conclusion:
With this deal both the companies are expected to achieve their goals and bring innovation to their operations. The Kaixin Auto is excited to use the proceedings in their R&D to bring more innovation to their technology.
