Why Are Kaixin Auto Shares Trading Higher Today?

Kaixin Auto Holdings KXIN traded higher Tuesday following news the company intends to enter the smaller-size electric vehicle market in China.

"Kaixin's new energy vehicle unit has launched development plans focused on smaller EV models in the subcompact and minicompact categories," the company said in a press release issued Tuesday morning.

In addition, the press release also indicated "To speed up the process, the Company has discussed mergers and acquisitions with a number of electric car manufacturers. Kaixin will disclose the results in a timely manner."

Shares of Kaixin sold off through much of 2021. The stock opened the year under the $4 level and had traded to as low as under $1.70 in August.

The stock is up nearly 12% to around the $3.25 level as of Tuesday afternoon.