Kandi, the Tesla of China, reports record earnings, KNDI stock skyrockets

The “Tesla of China” name  is a huge stretch but the company is doing pretty well today on better than expected earnings today. China-based Kandi posted a 92.2% year-over-year increase in revenue to $50.6 million. They build Smart-car sized electric cars in polluted China where people are getting more and more money and want clean cars.

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Full-year revenue grew 46.5% year over year to $94.5 million.

“For full year 2013, we achieved our expectations for revenue growth, including that almost 50% of total revenue came from EV sales. We expect this growth momentum will carry well into 2014,” said chairman and CEO Xiaoming Hu in a statement.

In its 10-K filing with the SEC, the company also noted that it has been a part of an SEC investigation since November. If lengthy, Kandi said it will have a significant impact on its financial position.

“A protracted investigation could impose substantial costs and distractions, regardless of its outcome. There can be no assurance that any final resolution of this investigation will not have a material and adverse effect on the company’s financial condition and results of operations,” the company said in the filing.