President Biden and ESG Investors should all take notice of Ideanomics
Ideanomics, Inc. (NASDAQ: IDEX) is a company ideally situated to make the most of President Biden’s Democratic administration’s goal of advancing the Green economy. Additionally, the company’s objective to facilitate the adoption of commercial electric vehicles from sales to financing to charging (S2F2C) fits well into the overall market trend toward ESG (Environmental, Social, Governance) investing.
The electric vehicle division, Mobile Energy Global (MEG), provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity, as well as financing and charging solutions. Breaking down the S2F2C model a little further, Sales helps fleet operators obtain their choice of EV models suitable for their budget; Financing eliminates the need for a large cash deposit for a fleet; Charging sees the company sell energy used to charge both commercial and passenger EVs.
Focussing a little more on the Charging component, in January 2021 Ideanomics purchased private company Wireless Advanced Vehicle Electrification, Inc. (“WAVE”). This has the potential to be a game-changer with its industry leading technology that provides inductive (wireless) charging solutions for medium and heavy-duty electric vehicles. The technology is embedded in roadways and charges vehicles during scheduled stops and is fully automated and hands-free.
All this seems like a pretty good fit to be a leader in helping President Biden achieve success for the Executive Order signed on January 27, 2021, that directed federal officials to devise a plan for converting all federal, state, local and tribal fleets to clean and zero-emission vehicles. This directive alone amounts to approximately 650,000 vehicles in total.
But don’t forget the other division under the Ideanomics umbrella – Ideanomics Capital provides intelligent and innovative services for the fintech industry. This part of the company utilizes Artificial Intelligence and Blockchain to create solutions for Financial Institutions, the Real Estate industry and brings the best practices of exchanges to the over-the-counter marketplace.
For example, in May 2019 the company acquired a majority stake in Delaware Board of Trade (DBOT). DBOT fulfills Ideanomics’ strategic vision of combining a regulated and compliant platform to address traditional financial instruments with the capability of servicing digital assets. Another Capital holding is Intelligenta which has over 20 proven AI-driven SaaS and PaaS solutions. Intelligenta has been deployed in Asia over the past several years and began marketing its services in the U.S. in 2019.
It’s not unreasonable to think that there may be opportunities to spin out some of these holdings, if necessary, to unlock shareholder value and perhaps raise capital for other business segments.
Overall, this company ticks all the boxes to be a market darling for the foreseeable future. So mark Wednesday, March 31, 2021 on your calendar for the release of Ideanomics 2020 fourth-quarter and full year financial results to find out how things are going.
Dean Bristow has been involved in the North American Crude Oil business for 30 years including Energy Trading, Infrastructure Development, Transportation, and Refining. During that ... <Read more about Dean Bristow>