The pandemic couldn’t have caught electric vehicle (EV) and fintech play Ideanomics (NASDAQ:IDEX) stock at a worse time. Before the pandemic, this was a company in transition.
In fact, 2019 was a year of change for the company. It transitioned away from its oil and electronics trading units to focus on EV and financial services. Last year, despite the pandemic-induced weaknesses, Ideanomics was able to lay the foundation for 2021 and beyond.
IDEX stock has massive upside potential, which it continues to hone through its strategic acquisitions.
IDEX stock has had a volatile run in the past few months, flipping in and out of popularity, but it’s up more than 250% in the past year. Dilution remains a problem, though, as the company looks to expand its portfolio.
Ideanomics recently placed a couple of short-term notes to investment company YA II PN, worth $145 million collectively. Additionally, it entered into a new agreement with Roth Capital Partners to sell up to $150 million of its shares. Even still, this move is likely to push its stock price higher for the foreseeable future with its strong performance.
Strong EV Sales Growth
Ideanomics pivoted to EV and financial services back in 2019, which saw its revenue decline 88% for the year.
Perhaps the most significant development in that move was the formation of its Mobile Energy Global (MEG) division. The division works on the migration of commercial fleet operators from gasoline-powered vehicles to EVs, which have shown a marked increase in sales.
Revenues for the year were at $26.8 million, which came in significantly lower than 2019. A large part of it is due to the company still reorganizing its business and the pandemic.
The high point of the results were its EV revenues, which were up $19.5 million compared to just $2.7 million in 2019. This represents a massive increase of $16.8 million, or roughly 600%. These revenues included sales of the company’s charging and battery systems, which form a critical element of its EV ecosystem.
The Ideanomics S2F2C (Sales 2 Financing 2 Charging) business model will continue to gain traction this year and beyond with its strategic acquisitions.
Strategic Acquisitions
Ideanomics has been on an acquisition spree in the past few months. It acquired online real estate transaction services company Timios back in November. Timios generated $60 million revenues year-to-date as of October 2020. It is expected to provide solid gains to Ideanomics with the tailwinds in the housing market alongside expansion efforts.
Furthermore, Ideanomics acquired Utah-based fleet charging solutions company WAVE in January.
WAVE offers 250-kilowatt charging pads. Additionally, the company is working to develop a 500 kW and a one-megawatt system.
Apart from these noteworthy acquisitions, Ideanomics also invested in Solectrac, an electric truck manufacturer planning a commercial release in 2022. Additionally, it invested $15 million in SilkEV, which is a vehicle engineering and design company.
Moreover, Ideanomics has also invested $13.2 million in Energica Motors, an electric motorcycle developer based in Italy.
Bottom Line on IDEX Stock
IDEX stock may have been up and down recently, but it has still improved significantly in the past year. Ideanomics have so far been impressive in its transition toward the EV and fintech business.
The company has made some pertinent strategic acquisitions that are likely to pay dividends down the line. Its financials remain strong, and it has set the stage up for a solid 2021 and beyond.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.
