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Kaixin Auto Jumps 43% On $500m Order

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By Sam Boughedda

Investing.com — Kaixin Auto Holdings (NASDAQ:KXIN), the used and new car dealership, has rallied 43% Thursday after it told investors it had reached a $500 million agreement with Beijing Bujia International Logistics.

Beijing Bujia has agreed to order at least 10,000 new energy trucks from Kaixin over the next five years.

Bujia, a Chinese automotive retail logistics and service terminals platform, said that over the next five years, it plans to establish 300 automotive logistics transfer warehouses and 1,000 automotive terminal delivery centers. In addition, they will integrate a fleet of more than 60,000 delivery trucks, with new energy trucks accounting for no less than 30%.

"The Chinese market has huge potentials for new energy commercial vehicles. Bujia has rich resources in automotive logistics operators networks," Mingjun Lin, Chairman and CEO of Kaixin.

"This is the first major sales order obtained by Kaixin's new energy vehicle business unit, which enhances our confidence to expand into the new energy vehicle area."

Kaixin — which launched a new energy vehicle business unit for EV R&D, production and marketing — released its strategic plan for new energy vehicles at the start of December, setting a production and sales target of 50,000 new energy vehicles between 2022 and 2025.

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