If one is having a hard time following the logic of this all, just think about the old Yahoo (now Altaba-AABA) and its owning 11% of Alibaba shares. Trading around $70 and as high as the low 80's not long ago, basically, all it owns of serious value is Alibaba shares which gives AABA a $42 Billion Market Cap. If BABA goes up, or down, AABA somewhat "tracks" the same move. So, if KNDI JV goes up in value, then KNDI stock should at least reflect 50% of a similar move since KNDI reports its JV ownership on the equity basis. So in this case, one might say that AABA is a proxy for BABA. If they get too far out of line, a fund might sell the overvalued one and buy the other. For this reason, if KNDI JV is valued at $2 Billion, then KNDI should "track" at least $1 Billion when its own assets are added.