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.

The commercial electric vehicle (EV) space is starting to accelerate now, boosted by Government initiatives and favorable economics. In October 2020, there was a big announcement in China that many people missed. It was announced that China passed a plan to boost their new energy vehicle industry (NEVs are mostly comprised of EVs). The key point was: “Starting from 2021, at least 80 percent of public transportation, taxi and logistics vehicles in the national ecological civilization pilot zones in Fujian, Jiangxi, Guizhou and Hainan should be new energy vehicles.” This is very big news for the Chinese commercial EV space. The Company I am discussing today is focused precisely on this area.

The global commercial vehicle market is enormous, with the new opportunity being the switch to EVs

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Ideanomics, Inc. (NASDAQ: IDEX) is a global fintech company for transformative industries with a goal of empowering a new economy. Ideanomics has identified a niche market in the commercial electric vehicle (EV) segment – helping companies with EV fleet purchases by financing and brokering deals, EV leasing, and EV charging with an initial focus on China but also expanding globally. Many fleet operators are restricted in what they can borrow on EVs as opposed to on internal combustion engine (ICE) vehicles – hence an opportunity for Ideanomics.

Ideanomics has two key divisions:

• Mobile Energy Global (MEG) – Provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. The main focus for now is Chinese EV fleet operators, however a recent 14.7% investment into Solectrac (California e-tractor company) shows the intention for global expansion. Another was their 2019 51% acquisition of Treeletrik, the only licensed pure-play EV manufacturer and distributor in Malaysia.
• Ideanomics Capital – Provides disruptive fintech solutions and services across the financial services industry. Ideanomics focuses on leveraging technology and innovation to improve efficiency, transparency, and profitability for the financial services industry. A recently announced purchase of 100% of California-based Timios Holdings Corp. (a leading title and settlement solutions provider) again shows Ideanomics is expanding globally.

Ideanomics – Driving commercial EV adoption and disruptive fintech solutions

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Ideanomics business model is to target new and disruptive industries such as EVs and fintech. Added to this, Ideanomics takes a long term view and aims to establish solid businesses with recurring revenues. Some examples would be regular EV fleet sales, EV charging, EV financing, real estate settlement/title services and other fintech businesses.

Ideanomics’ DNA is to serve as a catalyst for change through innovation. With innovation comes the chance to drive greater efficiencies that can lead to greater revenues and ultimately profits. Ideanomics MEG division remains Ideanomics’s core business, accounting for 95% of revenue in Q3, 2020. A November 10, 2020 paid broker report guides for Ideanomics revenues to be US$30M in CY20 (Q3 2020 revenue was US$10.6M) and to ramp up to about US$100M in CY22. They quote an end CY22 intrinsic value for Ideanomics of US$2.44/share.

Also of some interest is that there has been recent buyer activity from Morgan Stanley.

Ideanomics revenue is growing fast achieving US$10.6M in Q3 2020

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Commercial EV deliveries growing each month led by taxi and ride hailing

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Closing remarks

The commercial EV space is currently undergoing the first and early stages of an enormous disruption as the global fleets move towards electrification. China is leading the way and hence is where Ideanomics has their main initial focus. I would expect the trend to grow exponentially both in China and globally as operators start to understand the massive cost savings of running EV fleets versus combustion cars. Ideanomics has already expanded into Malaysia and California, USA.

Ideanomics has been traveling under the radar with many investors not yet knowing or understanding their business, leaving a potential opportunity for early investors. As the Company grows so will the recognition and revenues, and in time profits. Ideanomics trades on a current market cap of US$236M. One to follow.