(Bloomberg) -- Kandi Technologies Group Inc. plans to work with companies including Alibaba Group Holding Ltd., Uber China and China Minsheng Banking Corp. to promote connected electric cars, according to people familiar with the matter.
Zhejiang Geely Holding Group Co. and ZTE Corp. will also be among the companies that plan to sign a manifesto in Hangzhou, China, on Tuesday, the people said, asking not to be named ahead of the official announcement. Kandi shares fell 19 percent to $8.75 at 9:51 a.m. in New York after tumbling as much as 23 percent, the most intraday since September 2012.
The companies will form a group of strategic partners to work together on areas conducive to promoting connected electric cars, according to the people and a copy of the manifesto that was reviewed by Bloomberg News. Alibaba will support the initiative with its Big Data analytics and cloud computing services, ZTE will provide its wireless charging technology while Uber will contribute with its car-sharing know-how, one of the people said.
The initiative takes place after the central government in July unveiled a plan to link technology companies with manufacturers under an “Internet Plus” plan to rejuvenate traditional industries through the use of services such as cloud computing and artificial intelligence. Promoting the use of electric cars and reducing air pollution are also national priorities, with China pouring billions into subsidies and research grants into battery development and the building of charging stations.
Representatives for Kandi, Uber, Geely and Minsheng declined to comment. Bob Christie, a spokesman for Alibaba, said the company couldn’t immediately comment. A person answering the phone at ZTE’s main line declined to put the call through to the spokesman.
Last month, the State Council, or cabinet, said it will add to subsidies aimed at speeding up the building of electric-car recharging stations, targeting enough infrastructure to handle 5 million plug-in vehicles by 2020.
Besides manufacturing and selling EVs to consumers, Kandi also provides them for short-term hire using automated multilevel garages. It has expanded its services to more than 10 Chinese cities with over 16,000 electric cars, according to the company.
Kandi, which makes cars with joint venture partner Geely Automobile Holdings Ltd., plans to announce on Tuesday it will add 200 Gleagle K17 electric cars into its rental network, according to one of the people with knowledge.
Kandi’s stock surged 79 percent in October in Nasdaq trading, capping its first monthly gain since February. The stock fell 23 percent this year through Nov. 6
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