(Yicai Global) Nov. 11 -- Eve Energy has been forced to defend its ambitious performance targets for this year, which include a doubling of revenue, after the good news saw the Chinese electric car battery maker’s stock price hit a record high, prompting the Shenzhen stock exchange to question its motives.

Eve Energy’s share price [SHE:300014] closed down 1.27 percent at CNY131.78 (USD20) today. The stock has gained 15 percent in the last week since the news was announced and 32 percent in the past month.

The performance targets announced on Nov. 5 are reasonable, the Huizhou, southern Guangdong province-based firm told the exchange. The firm has been expanding its lithium iron phosphate battery capacity, providing the basis for growth, it added.

The company announced a new equity incentive plan for 1,600 employees last week. In the plan, it set its revenue target at CNY16.3 billion (USD2.5 billion), double that in 2020. It also set an earning’s growth rate target of 60 percent between 2022 and 2024, when last year's it increased by 27.3 percent.

The ambitious goals raised concern at the Shenzhen Stock Exchange, which sent a letter on Nov. 9 asking the company to explain the rationality of its performance targets and to check for insider trading.

Editor: Kim Taylor