Well NETE Has Been Fun--Now Its Time for KNDI !πππ
Hey Subscriber,
Well-- NETE has sure been fun! $9-$15 in a few days? No worries if you missed out--our EV "cupboard" of favorites is VERY full--the trick is to NOT chase their ballistic melt-ups and buy them when they inevitably fall back to earth.
Remember this note we sent last week?
"Notice KNDI's last ballistic melt-up to $17.50 and how financial gravity pulled it back (we will get to KNDI another day--but AFTER the short-selling melt-up comes back to earth):
Well, KNDI did come back to earth by raising $100 million in new capital to blitz North American Millennials and Gen-Z aka "Zillennials" or "Zoomers" with the micro EV that is perfect for the Zoomer values and buying behavior.
Moreover, with tax credits now approved (Federal $7500 and State) in every state in the union for EVs (and other new incentives to come from the Biden Administration), M&Z's will have a small 2-seater EV that will cost just them just $9,995 and a 4 seater just $19,995 for a brand new WAY COOL way to tell their friends and the world "I am a Zoomer--doing MY PART to save the world from global warming--how about you BOOMER--what are YOU doing!"
I guarantee you that only a few of our subscribers are interested in a small EV--because you are NOT the Kandi EV customer, OK?
But after reading all 100 pages of a 2-year study by BofA Global Research on the "Z-Factor" aka Gen-Z value-based purchasing behavior, I can tell you this--to Urban and suburban Zilleniall's, their social causes are a VERY big part of their self and social identity. And there is, according to this seminal research report (which we send out to you in an image file or PDF as well as a link on our website), NO greater social cause that stirs the hearts, minds and wallets of Gen-Z and millennials than fighting back against global warming.
Key Point: There is also no greater buying incentive to Zoomers than owning something the signals their virtuousness about ending global warming--and KNDI 2 and 4 seater EVs are the ultimate virtue signal for ANY Zoomer/Millennial Urban and Suburbanite.
This is the perfect set-up for micro-EVs in 2021-2022 in North America to rise. Micro-EVs are huge in urban/suburban China (of course--have ya been there?) and urban Europe (have you BEEN to Europe?)--where Zillennials are snatching up these micro-EVs like Adderal pills before a final exam.
Really Key Point: When Kandi Automotive rolls out their two-seater and 4-seat micro SUVs for the price of a nice set of great room furniture & big screen TV, we and many other analysts see micro-EV mania hitting KNDI autos the same way EV-mania has hit EV stocks ever since TSLA got inducted into the S&P 500.
The Investment Thesis is Simple: Urban & Suburban Z/Millennials Buy Their Values and INVEST Their Values + BIG Headlines Coming From California + 48 Other States that Awarding $2500 State Tax Credits ON TOP OF $7500 Federal Tax Credits
#1 There is NO higher shared social cause and value than Zillenials/Millennials doing their part to prevent irreversible global warming by 2050.
#2 Zillennials & Millennials are about to have more discretionary buying power than Boomers.
#3 Zillenialls and Millenials now buy about 25% of ALL stocks trades in the US market
#4 Z+ M's are the price-insensitive marginal buyer of EV stocks from Rare Earth SPACs to Chinese EV players and TODAY--for some unknown reason, they started a MANIA in EV charging station stocks (LOOK I LOVE BEEM--its the perfect stock for the new Zilleniall/Millenial Robinhooder--but right now it is NOT investable--we will buywhen the fever breaks).
#5 With big BLUE states like California, New York, New York, New Jersey etc in line to announce THEIR income tax credits for Kandi, there are serious headline catalysts for additional EV mania buying of KNDI stock.
Look at what happened with just the Texas announcement of $2500 tax credit:
Kandi +14% after Texas rebate approval, Tesla S&P development
Nov. 17, 2020 11:11 AM ET|
Kandi Technologies (KNDI) says it landed approval from the Texas Commission on Environmental Quality to offer a $2,500 rebate for buyers purchasing each of its electric vehicle models being offered by its U.S. subsidiary.
Details: "Only one rebate can be applied per Kandi vehicle and quantities are limited. Including the state incentive and $7,500 federal tax credit, buyers in Texas can own a Kandi EV for less than $8,000... Kandi's compact city driver, the K27, has an MSRP of $17,499. The combined $10,000 federal and state incentives reduce the price to just $7,499.
The K23, Kandi's SUV-style model, is regularly priced at $27,499, but eligible buyers can own one for only $17,499 with state and federal incentives."
The company announced its electric vehicles received the required clearance from the United States Environmental Protection Agency for the $7500 Federal tax credit in June 2020.
PS: The Biden Administration has long been in favor of INSTANT Tax Credits at the date of purchase! They have the power to add that incentive to the $7500 EV Federal Tax Credit without needing Congressional approval!
That leaves lower-priced <$20 stocks like EV DPW (a crazy mishmash of companies with an EV division) and <$20 KNDI as the low hanging fruit of EV stock mania.
And again, like NETE (up from $9.45 to $14.20 in two days!),
the relative valuation of KNDI is SO MUCH saner than the other EV ecosystem stocks.
Action to Take: BUY $KNDI Up to $22 with 2022 Target of $55 on
$400M sales is 2023.
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Here is a great set of videos that tells the Kandi brand story.
Bottom line: we are in the middle of the second wave of EV ecosystem stock mania--and at Transformity Investing PRO we NEVER miss a good stock mania!
Clearly, the entry of Tesla into the hallowed S&P 500 as the 15th most valuable stock in the world has unleashed animal spirits--especially in the hearts and fingers of the new Zoomer/Millennial investor class who now represent 25%+ of trades on a daily basis.
When Zoomer/Millennial social values are triggered and combined with their love of small-cap EV stocks, WHO KNOWS when the love affair ends. And trust me--IF we are fortunate to once again get a Zoomer Robinhood melt-up like our $12-$36-$72 and then $95 melt-up in Nikola shares (which we are looking SERIOUSLY to take a second swing at--new data in from our GM contacts!!), we will be LONG GONE from KNDI ok?
ALL I KNOW is this for sure: the odds are great that KNDI shares are headed much higher as it becomes the NEWS poster child of Zooomer EV stocks.