Today we are going to look at an investment company that has roughly a $1 billion market cap and a substantial amount of news flow. Committed to providing financial support for growing companies within disruptive industries, Ideanomics, Inc. (NASDAQ: IDEX) holds interests in over a dozen companies in the electric vehicle, social media platform creation, and fintech & financial service industries.
Today I am going to focus on WAVE and Energica.
If you aren’t familiar with Ideanomics, WAVE is leading-edge and arguably disruptive technology, at least in its category. In January 2021 Ideanomics purchased private company Wireless Advanced Vehicle Electrification, Inc. (“WAVE”). WAVE delivers near-instantaneous, safe, high power from charging pads embedded in the roadway within seconds of scheduled stops. Medium- and heavy-duty electric vehicles gain substantial range and operation time without manual plug-in operations or mechanical contact. With power ranging from 125kW to 500kW and higher, WAVE’s high-power systems are ideal for powering electric vehicles for mass transit, warehouse and distribution centers, shuttle services, seaports, and more. In other words, just like you would charge your smartphone on a wireless charger, you simply drive a bus, or whatever heavy duty vehicle you are operating, over the right part of the parking lot and just like that — you are charging.
Source: WAVE by Ideanomics Website
Yesterday the Company announced AVTA (Antelope Valley Transit Authority, which is just North of Los Angeles) finalized a large, multi-million dollar purchase order of 28 additional wireless chargers to go along with the 10 they already had. There is already WAVE technology powering commercial EVs from Chehalis, Washington to St. Petersburg, Florida.
In addition to the WAVE technology, another business within the Ideanomics family is Energica: the developer of high performance 100% battery-powered motorbikes. In March, 2021 Ideanomics acquired a 20% stake in Energica Motor Company, then on September 15th they upped the ante by launching a conditional tender offer in concert with the Founders of Energica for shares to increase its investment in Energica to approximately 70%. This past Monday Ideanomics announced its Capital Division plans to help accelerate U.S. Energica dealer network expansion, with a goal of more than doubling Energica dealers in the United States by the end of 2021 and set the stage for further expansion in 2022. If you look at the stock price of BRP (Bombardier Recreational Products (TSX: DOO)) you will see that Covid re-introduced a lot of people back into all-terrain vehicles and motorcycles. As more options for zero emission “toys” become available I think this could be a huge growth segment for the Company as Energica targets markets that have demonstrated a propensity for early electric vehicle adoption. Plus these Italian superbikes are pretty awesome to look at.
Source: Energica Motors USA website
In addition to these two Ideanomics businesses that strike me as have tremendous growth potential, there is also a solid investment thesis here. Ideanomics has several other business segments like US Hybrid Corporation, which specializes in the design and manufacture of power conversion systems for medium and heavy-duty electric, hybrid, and fuel cell commercial buses and trucks. Or their Treeletrik subsidiary, the first Malaysian company to locally manufacture a fully electric bike, pioneering innovative electric vehicle technologies for the Malaysian market, and beyond. And last but not least is Soletrac, North America’s first manufacturer and distributor of 100% battery-powered, all-electric tractors, just to name a few.
Combine all these businesses with the fact that Ideanomics finished Q2 with US$395 million in cash, and you have a pretty interesting investment case. With roughly 433 million shares outstanding that are approximately $0.91/share in cash or 43% of yesterday’s closing price of $2.13.