Geely said earlier this year it planned to enter the electric vehicle business with Kandi Technologies Group, a Chinese maker of small vehicles including go-karts.

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Rational investors like to buy a stock before all the good news comes out, so the critique that Kandi does not have significant past EV business seems irrelevant to the typical forward looking investor.

FORBES: Connect

Those who read the tea leaves in the Chinese press think Kandi is very close to announcing a deal to sell 20, 000 or 100, 000 of their electric mini-cars to a municipal rental program, and the option holders almost certainly know that.

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As for the related party transactions, investors who have been following Kandi closely for several years tell me that these transactions have long been disclosed, and while I found the article hard to follow, I did not see anything which made me believe that company insiders were using related party transactions to drain money from the company.

FORBES: Connect