NEW YORK (AP) -- Shares of Kandi Technologies Group Inc. surged Monday after the electric vehicle developer said that a Chinese city has broken ground on a new vehicle sharing program that will use between 5,000 and 10,000 of its vehicles in its first year.
THE SPARK: Earlier this month, the city of Hangzhou began construction of its first electric vehicle vertical parking and charging facility. The facility is part of the city's five-year plan to put in place a mini-public transportation system that will eventually include up to 100,000 rental electric vehicles and the infrastructure needed to support them, Kandi said.
The first facility is expected to be completed and put in use in early July.
THJE BIG PICTURE: The plan calls for more than 30 electric vehicle smart vertical parking and charging facilities to be built by the end of this year in Hangzhou. Between 5,000 and 10,000 Kandi electric vehicles are expected to be deployed in the city in the first year, the company said.
Kandi Chairman and CEO Hu Xiaoming said the program will provide convenient short-term electric vehicle rental service to Hangzhou residents and visitors, while also alleviating traffic congestion, parking scarcity, pollution and energy shortages.
THE SHARES: Up $1.23, or 20 percent, to $7.50 in heavy morning trading, after peaking at $7.67 shortly after the market opened. Over the past 52 weeks, the company's shares have traded between $2.59 and $8.50.