Shares of Kaixin Auto Holdings KXIN, +65.87% took flight on massive volume Friday, after the China-based used and new car dealership announced plans to establish a new energy vehicle (EV) business unit. The company said it has been in merger and acquisition talks with “a number of EV manufacturers.” The stock shot up 57.7% in afternoon trading on volume of 196.0 million shares, compared with the full-day average of about 366,500 shares. That was enough to make the stock the biggest gainer and most actively traded on major U.S. exchanges. Among some China-based EV makers, shares of Nio Inc. NIO, -4.36% dropped 4.3%, XPeng Inc. XPEV, -3.94% shed 3.8% and Li Auto Inc. LI, lost 3.4%. “The corporate strategic move has been made in the context of the Chinese government’s steady support for accelerated development of EVs and the rapid growth of EV market in China,” Kaixin said in a statement. “As a NASDAQ listed company, Kaixin is committed to become another player in the EV business following Li Auto, Nio, and Xpeng.” Kaixin shares have tumbled 29.4% year to date, while the iShares MSCI China ETF MCHI, -1.23% has shed 12.7% and the S&P 500 SPX, +0.10% has rallied 18.2%.
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