Ideanomics (NASDAQ:IDEX) stock got a boost today following news that it’s made an investment in electric vehicle (EV) company Solectrac.
According to a news release, Ideanomics now holds a 15% stake in the EV company. The company notes that it spent $1.3 million to acquire its stake in the company. It also gains it a seat on the Solectrac Board of Directors.
It’s worth noting that Solectrac isn’t a typical EV company. Rather than making electric cars or trucks, it’s work focuses on electric tractors. It has three models that target customers seeking tractors with less than 40HP.
Ideanomics notes that the current global tractor market is valued at $75 billion. By 2023, the North America tractor market is set to reach a value of $20 billion. The largest sector of this is tractors under 40HP, which matches Solectrac’s current offerings.
Alf Poor, CEO of Ideanomics, said this about the EV news.
“We are very impressed with Steve and the Solectrac team and their deep knowledge of the agricultural sector. We have been interested in this industry for some time because we knew EVs could have an immediate impact without the need for extensive infrastructure. Solectrac is a pioneer in the electric tractor market and shares our motivation and passion for a cleaner tomorrow.”
IDEX stock was up 18.2% as of noon Thursday and is up 25% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.