Ideanomics continues their blockbuster growth reporting EV revenue growth of over 600% in FY2020
Ideanomics, Inc. (NASDAQ: IDEX) is a US incorporated global company focused on disruptive industries such as Electric Vehicles (EV) and fintech & financial services. 2020 was a banner year for Ideanomics with several acquisitions, a large jump in EV related revenues, and a very strong stock price performance (the past 1-year return is 247%). Ideanomics is a super fast-moving company as was shown by being ranked the number 11th fastest growing company in North America on Deloitte’s 2019 Technology Fast 500™.
Ideanomics market opportunity in EV and fintech & financial services
Ideanomics has two divisions:
This division is focused mostly on EV fleet sales and financing as well as other opportunities such as EV charging and mobility services.
- Medici Motor Works aims to develop the North American specialty vehicle and pick-up truck market.
- Wireless Advanced Vehicle Electrification Inc. (‘WAVE’) develops inductive charging solutions for medium and heavy-duty vehicles in the United States. Ideanomics acquired 100% of WAVE in early 2021.
- Mobile Energy Global (MEG, 100% owned) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions in China.
- Treeletrik is an approved EV manufacturer and distributor for Malaysia. Treeletrik will drive ASEAN commercial EV sales leveraging Chinese & Korean OEM partners for manufacturing. Ideanomics bought 51% of Treeletrik in 2019.
- Solectrac develops and sells electric tractors and is based in California, USA. Ideanomics bought a 14.7% investment in Solectrac which was later increased to 22%.
- Energica Motor Company is an Italian electric motorcycle company. Ideanomics recently acquired 20%.
Ideanomics Mobility division targets recurring revenue from EV commercial fleet sales, financing, charging and energy
This division focuses on fintech disruption and financial services.
- Timios Holding Corp. is on a mission to revolutionize real estate transactions. Timios is a leading title and settlement solutions provider based in California USA with operations in 44 U.S states. Ideanomics acquired 100% of Timios Holdings Corp. in 2020.
- Delaware Board of Trade (DBOT) is a next generation broker-dealer bringing the best practices of capital markets to the small cap marketplace.
- Intelligenta provides AI solutions to financial institutions and regulators.
- Technology Metal Market
For new investors to Ideanomics it can be a lot to take in, as there is just so much going on with Ideanomics. The key to understand is that Ideanomics focus is on ‘disruptive’ industries and companies. This means the companies they invest in have a higher chance to succeed due to the tailwinds of change.
Ideanomics EV revenue surges higher in full year 2020
In March 2021, Ideanomics announced revenues for the year ended December 31, 2020, were US$26.8 million. EV related revenue in 2020 was US$19.5 million versus US$2.7 million in 2019, an increase of US$16.8 million or more than 600%. Ideanomics is very well financed and as of April 1, 2021 had a cash position of US$330 million.
Very few companies have been as active in building a rapid presence in the EV and fintech space as Ideanomics. 2020 was a frenetic period of deal making and positive news flow. The culmination of all of this was the 600% increase in EV related revenue in 2020.
Looking ahead Ideanomics business model takes a long-term view and aims to establish solid businesses with recurring revenues. In the EV sector, Ideanomics is focusing on fleets and on their sales to financing to charging (S2F2C) business model. Ideanomics fintech acquisitions are also growing and focusing on building up long-term recurring revenues.
Investors who are looking for an investment and operating company that is rapidly moving forward into the disruptive areas of EVs and fintech should take a long look at Ideanomics. The company is still in the early stages of building their business and the trends are also still in the early stages with enormous growth potential.
Ideanomics Inc. trades on a market cap of US$1.33 billion.
Matthew Bohlsen is a Senior Editor for InvestorIntel.com. With a Graduate Diploma in Applied Finance and Investment, and a Graduate Diploma in Financial Planning. He ... <Read more about Matthew Bohlsen>