When it comes to electric vehicle (EV) companies, New York-headquartered Ideanomics (NASDAQ:IDEX) might not be the first one that comes to mind. And to be completely honest, many traders haven’t even heard of IDEX stock.
On the other hand, we could have said the same thing about some well-known electric vehicle stocks a few years ago. If you’re seeking to own a stock in that niche which isn’t famous yet, IDEX could be what you’re looking for.
Ideanomics is a fintech company that invests in the electric vehicle market, among other things. The company’s Mobile Energy Global segment “provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity, as well as financing and charging solutions.”
It’s actually refreshing to see a stock with an electric vehicle connection that’s not trading at sky-high prices. Taking an early-stage stake in IDEX stock could prove to be a worthy investment in a company that’s not a household name, but might be someday.
IDEX Stock at a Glance
The primary objective of the IDEX stock bulls should be to push it above $5 and keep it there. That’s a significant price point because the U.S. Securities and Exchange Commission (SEC) classified a stock that trades under $5 per share as a penny stock.
Notably, the bulls did attempt to keep IDEX stock above the $5 level in 2017, and then again in 2018. There have been other sharp price spikes as well.
Therefore, it’s possible to own IDEX stock in anticipation of another big price move. A couple of major spikes took place in 2020, actually. The most impressive one happened in June, when the bulls powered IDEX from 38 cents to more than $3.
As of Dec. 30, IDEX stock was trading slightly below the $2 level. There’s no way to predict exactly when the next bull run will occur. However, there might be one right around the corner as electric vehicle stocks are known to move fast and far.
Unusual EV Ventures
2020 proved to be a year of interesting electric-vehicle ventures for Ideanomics.
For instance, in November, Ideanomics increased its ownership stake in Solectrac, a California company that designs battery-powered tractors for agriculture, to 24%.
It’s not every day that you see a major press release related to e-tractors. So, Ideanomics’ hiked Solectrac stake is certainly intriguing. If the agriculture industry goes green and clean, perhaps IDEX stock holders could benefit from Ideanomics’ early move into this niche.
Yet, this wasn’t the company’s only recent electric vehicle segment partnership. In late December, a press release revealed that Ideanomics and its contracting entity, Qingdao Chengyang Medici, signed an agreement with Meihao Chuxing to purchase 2,000 electric ride-hailing vehicles.
A New Type of Vehicle
The vehicles are manufactured by Chinese automaker BYD (OTCMKTS:BYDDF), and the car model is known as the D1. Designed as ride-hailing vehicles, the 2,000 D1 units will be “intended for deployment in multiple cities within China, with deliveries expected to begin in H1 2021.”
Evidently, the trading community appreciated this development as IDEX shares gained 17.6% in the pre-market hours of Dec. 28 upon the release of this news.
What’s special about the BYD D1? According to the press release, it’s “the world’s first custom-built, all electric car specifically for ride-hailing with smart technology, safety, and comfort features for both drivers and passengers.”
By owning a fleet of D1 cars, Ideanomics is poised to be among the first companies to make a significant investment in this type of vehicle.
Among the D1’s features are the L2 Assisted Driving system, plus a Blade Battery with a range of 260 miles. Additionally, the D1 reportedly can reach top speeds of 81 miles per hour.
Ideanomics isn’t your typical electric vehicle company. And IDEX stock is an unusual electric vehicle niche investment.
That’s not a bad thing at all. Not everybody wants to buy shares of an electric vehicle stock that’s already famous. Ground-floor opportunities can sometimes yield very impressive financial results.
China’s electric vehicle market can expand in multiple directions. Cars for ride hailing could be part of that expansion. IDEX stock’s value proposition, therefore, comes from early-stage ventures into unique, and potentially very lucrative, niche markets.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.