July 25, 2014 (Update) - On July 23, 2014, a report alleged that 'Kandi Technologies Group is selling EVs and battery packs at a loss to the JV and certain other corporate entities for the buildout of the Carshare project of which they only have a 9.5% economic interest in. The most disturbing part of this is how KNDI continually boasts about huge revenue growth when, in fact, all they are doing is building out inventories and selling battery packs at a loss to create the appearance of rapidly growing company revenue.' Shares of Kandi Technologies Group Inc declined from $22.18 per share on July 22, 2014, to as low as $18.10 per share on July 23, 2014.

May 9, 2014 (Shareholders Foundation) - An investigation on behalf of investors of Kandi Technologies Group Inc (NASDAQ:KNDI) shares over potential securities laws violations by Kandi Technologies Group and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Kandi Technologies Group Inc (NASDAQ:KNDI) concerning whether a series of statements by Kandi Technologies Group Inc regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Kandi Technologies Group Inc reported that its annual Total Revenue rose from $40.18 million in 2011 to $94.54 million in 2013 while its Net Income of $9.11 million declined to a Net loss of $21.14 million in 2013. Sharers of Kandi Technologies Group Inc (NASDAQ:KNDI) grew from $3.71 per share in March 2013 to as high as $21.41 per share in March 2014.

Then on May 5, 2014, the Securities and Exchange Commission (SEC) charged a Toronto-based consultant and four associates with allegedly conducting illegal reverse merger schemes to bring a pair of China-based companies into the U.S. markets so they could manipulate trading and reap millions of dollars in illicit profits. The SEC alleges that S. Paul Kelley and three of the associates acquired controlling interests in two U.S. public shell companies in order to orchestrate reverse mergers with China Auto Logistics Inc. and Guanwei Recycling Corp. According to the SECs complaint filed in U.S. District Court for the District of New Jersey, the schemes involving China Auto and Guanwei Recycling occurred in 2008 and 2009. Becker, Lockhart, and Tazbaz orchestrated manipulative trading in a third China-based issuer Kandi Technologies in 2009 and 2010.

Sharers of Kandi Technologies Group Inc (NASDAQ:KNDI) closed on May 9, 2014, at $11.44 per share.