Ideanomics Charges into 2021 with EV Sales and Acquisitions in Both Divisions
Ideanomics Inc (NASDAQ:IDEX | FRA:0V5) is a company with two operating divisions, Ideanomics Mobility and Ideanomics Capital, that gives investors the opportunity to participate in two of the hottest trends: electric vehicles (“EVs”) and financial technology (“fintech”).
Ideanomics Mobility focuses on the global EV market through its operating companies and investments including Mobile Energy Global (“MEG”), Medici Motor Works (“MMW”), Treeletrik, and Solectrac, and latest acquisition Wireless Advanced Vehicle Electrification, Inc. (“WAVE”).
Ideanomics Capital focuses on fintech solutions through its operating companies and joint ventures dbot, intelligenta, Liquefy, and Technology Metal Market, and most recent acquisition, Timios Holdings Corporation (“Timios”).
Recent announcements show the progression in both divisions as the company grows both organically through sales and inorganically through acquisitions.
Ideanomics Mobility’s business model is generating revenue during all stages of the EV sales process, from EV sales (Sales) to financing advisory revenue (Financing) to energy source revenue (Charging), and they refer to it as the “S2F2C” model.
The company focuses on commercial EVs (heavy-duty trucks, urban logistic vehicles, buses, farm equipment, and taxis) that often benefit from government subsidies but often require specialized financing.
Vehicle and battery sales originate from MMW, Treeletrik, and Solectrac.
The MEG division specializes in facilitating the purchase of electric vehicles by commercial fleet operators by providing vehicle procurement, finance and leasing options, and energy management solutions.
MEG Operations for December
On January 15, Ideanomics announced its December deliveries for the MEG division and it delivered 439 vehicles in December with 356 vehicles in the taxi/ride-hailing industry and 83 in the rental-car business.
According to the company, its fourth quarter results did not include any vehicles from the recently announced deal with Didi Chuxing (“Didi”), a ride-sharing company based in Beijing, and Build Your Dreams Auto (“BYD”), a Chinese manufacturer of taxi EVs.
In December 2020, Ideanomics helped Didi buy 2,000 EVs for Didi’s ride-hailing service from BYD with deliveries starting in the first half of 2021.
Power Provider – Becoming the Exxon of the EV World
On January 5, Ideanomics announced that it signed a definitive agreement to acquire 100% of privately held WAVE, a provider of wireless charging systems for Commercial EVs.
“The acquisition of WAVE is a significant one for our EV efforts across the board,” commented Alf Poor, CEO of Ideanomics CEO. “WAVE has become a market leader in inductive charging systems, which are much better suited for commercial EVs than plug-in charging systems.”
WAVE’s system uses charging pads embedded in the roadway for in-route charging when a vehicle is stopped for passenger pick-up or delivery and enables operators to achieve driving ranges that match most fossil-fuel vehicles.
The company believes the WAVE acquisition complements its MMW and Treeletrik businesses, and its investment in Solectrac.
North American Expansion
Ideanomics continues to prepare to launch its heavy truck and specialty electric vehicle unit, MMW, in North America in 2021.
MMW focuses on commercial fleet operators with Battery Electric (BE) and Hydrogen & Fuel Cells (H2FC) Trucks for heavy-duty transport. BE trucks are better suited for short-distance operations and H2FC trucks are better suited for long-distance hauling.
Ideanomics Capital is the company’s fintech business unit, which focuses on leveraging technology and innovation to improve efficiency and profitability in the financial services industry.
On January 11, Ideanomics announced that it completed the acquisition of Timios, showing that the company is actively investing in both divisions.
California-based Timios is a title and settlement solutions provider in the US real estate market. Timios offers solutions for real estate transactions, including residential and commercial title insurance, and closing and settlement services.
Timios operates 44 states and, from the nine-months ended September 2020, had booked over US$54 million in revenue, including over US$8 million in October 2020. Timios employs almost 300 employees.
Ideanomics expects that Timios will become one of the cornerstone operations of Ideanomics Capital.
With the Global EV market expected to grow to US$360 billion by the end of 2025, at an annual growth rate of over 16%, Ideanomics is well-positioned to benefit from this surging market as it focuses on its broader S2F2C business model in the EV space.
Ideanomics gives investors the opportunity to participate in two of the hottest trends: EVs and fintech.
Chris Thompson, CFA, MBA, P.Eng is the President & Director of Research at eResearch Corp. and a Sr. Editor and Director for InvestorIntel Corp. Chris ... <Read more about Chris Thompson>