The stock of Kaixin Auto Holdings (KXIN) declined in the pre-market after the company announced $20 million of new investment by investors in a press release. The stock of KXIN is trading at $1.20 in the pre-market. This is a slight decrease of 3.3% from the previously closed value. At the end of the last trading session, the stock closed at $1.24. The stocks traded in the last trading session were around 4.59 million shares.
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Reason for the KXIN stock decline
The stock of Kaixin Auto Holdings (KXIN) declined after the company announced in a press release about the new investment of $20 million. They said that the company has secured a commitment of investment of $20 million from various investment institutions. They reported that $2 million from the deals have been funded and the rest of them is expected to complete by the end of the first quarter of 2022.
Kaixin Auto Holdings (KXIN) stated that this is the first round of financing following the announcement of its new strategy for its EVs. This financing will help in the development and design of new EV trucks for mass production and delivery. They may start delivering in the 2nd half of 2022.
The CEO of Kaixin Auto Holdings (KXIN) Mr. Mingjun Lin said that the truck market in China is very large. They are currently in a stage of transitioning from fossil fuel to EVs. He said that they have forecasted the growth and are currently adopting a practical development model without putting in extra costs. He is thankful to the investors for trusting in their vision for the EV truck market.
Effect on the stock
The stock is currently in decline in the pre-market and as soon as the regular trading session starts, the investors will respond positively to the news. It is expected that this development in the form of new investment will have a positive effect on the stock of Kaixin Auto Holdings (KXIN).
Conclusion
With this new pool of investment, Kaixin Auto Holdings (KXIN) will be able to increase its production and grab a section of the EV truck market in the near future. This investment will help the company to better execute its plans for dominating the EV truck market in China.
