It’s been a wild couple of weeks for technology stocks to say the least. It’s not unusual to see 5%-10% (or more) daily moves in some of the biggest names in the stock market. That can be a little unsettling unless you have tremendous conviction in the equities you hold. And it gets even harder to stomach if you are participating in the leading edge (often called the bleeding edge) of disruptive or innovative companies. To have confidence in your holdings, such that you can weather the market gyrations and sleep at night, it helps if your equities are on firm footing.

With that in mind, today we are going to discuss a global company that is driving the sustainability transformation, but has the luxury of already generating revenue, churning out a quarterly gross profit and already had US$256 million in cash at the end of Q3/21. That’s the kind of cushion that should let an investor rest relatively easy while they await the promise of a greener, cleaner future. The company is Ideanomics, Inc. (NASDAQ: IDEX) and it is focused on the convergence of financial services and industries experiencing technological disruption. The Ideanomics Mobility division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under an innovative sale to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions for the financial services industry.

Ideanomics has a lot of irons in the fire, and an attempt to review them all would result in a small (but interesting) novel. So today we are going to focus on a business segment that is generating a lot news of late – US Hybrid. Ideanomics acquired the privately held manufacturer and distributor of electric powertrain components and fuel cell engines for medium and heavy-duty commercial fleet applications in May, 2021. Since that time US Hybrid has delivered EV power electronics components to several OEMs, including CAT, Pratt & Miller, FEV, and Nova Bus, as well as several powertrain kits for battery electric street sweepers deployed nation-wide. The latest news came out Wednesday as US Hybrid was awarded an order for 19 ADA (Americans with Disabilities Act) compliant electric, long-range, transit vans from AVTA (Antelope Valley Transit Authority, which is just North of Los Angeles) to expand their electric fleet. The zero-emission vans can be impactful game-changers in moving towards a fully electrified world with each electric van displacing the need for over 10,000 gallons of fossil fuel each year.

It’s always good to see any of your business segments get traction in the market, but where investors should pay attention to this deal is in the synergies developing among different operating companies within the Ideanomics family. In 2017, AVTA started working with WAVE, another wholly owned subsidiary of Ideanomics, to implement high-power wireless charging pads both in-route and at the bus depot. As of today, AVTA now powers the largest electric bus fleet in the U.S. powered by 12 WAVE wireless charging pads located in their four transit centers.

I find the WAVE technology fascinating. 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. But beyond the interesting technology we are starting to see how the various Ideanomic brands are starting to lever off each other which could generate ever improving sales and revenue for the company.

Without writing that novel about other Ideanomics businesses, other mobility brands include:

Energica – The world’s leading manufacturer of high-performance 100% battery-powered motorbikes

Silk-FAW – Attracting top industry talent to produce fully electric, luxury vehicles for the Chinese and global auto markets from the heart of Italy’s Motor Valley

Solectrac – North America’s first manufacturer and distributor of 100% battery-powered, all-electric tractors

Treeletrik – The first Malaysian company to locally manufacture a fully electric bike, pioneering innovative electric vehicle technologies for the Malaysian market, and beyond

And that’s not even all of the Mobility divisions, let alone the Capital side of the business that includes a real estate transaction tool and a commodity trading platform. This seems like a lot of company for its US$492 million market cap when you consider that as of Sept 30, 2021, over 50% of that value was cash. Q4 and 2021-year end results are being released March 1^st at which point in time we can reassess the cash position and the progress being made from the various synergies. It should make for an interesting read.

Investors are increasingly aware that we have an electric vehicle boom unfolding this decade. 2021 electric car sales are on track to increase about 100% from 3.2 million in 2020 to a forecast 6-6.5 million in 2021. Of course, some electric car companies already have huge market caps such as Tesla (NASDAQ: TSLA) on US$1.019 trillion, BYD Co (OTC: BYDDF) US$108 billion, Rivian (NASDAQ: RIVN) US$92 billion, and Lucid Group (NASDAQ: LCID) US$78 billion. The last two are relatively new IPOs with almost no income in 2021.

What if I told you that there was an investment company that held significant positions in 9 different electric mobility related companies and 3 capital/fintech related companies with forecast 2021 revenues of US$120 million, forecast to rise to US$200 million in 2023. Plus its market cap is well under one billion US dollars. Actually its market cap is US$676 million, or ~3.4x forecast 2023 revenues.

The company is Ideanomics Inc. (NASDAQ: IDEX). Ideanomics is a global investment company focused on investing in disruptive companies such as those driving the adoption of electric vehicles and fintech services innovation.

In addition to owning significant percentages in 9 electric mobility related companies, Ideanomics also has ownership in 3 capital (fintech/financial services) companies. Ideanomics’ latest acquisitions include 100% of VIA Motors International and increasing from 20% to 70% of Energica Motor Company.

Ideanomics Mobility

In electric mobility Ideanomics works to assist commercial fleets in vehicle procurement, EV financing, mobility services, charging infrastructure (including wireless charging), and energy management. Ideanomics 9 electric mobility related investments/companies are:

• 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 U.S. Ideanomics acquired 100% of WAVE in early 2021.
• Ideanomics China (formerly 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 plans to 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 manufacturer and distributor of high performance 100% battery-powered electric motorcycles. Ideanomics acquired 20% and more recently agreed to increase this to 70%. More details here. Energica recently announced additional U.S. dealers in their network expansion across the USA. Energica is growing rapidly with 91% sales growth in 2020, and continued growth in 2021. Consumer demand remains high, and dealers already have a backlog of pre-orders.
• SilkEV offers Italian engineering and design services.
• US Hybrid – Announced in May 2021, Ideanomics acquired 100% of US Hybrid, a company that has pioneered clean transportation technologies for more than 20 years. US Hybrid offers proven zero-emission powertrain components for electric, hybrid and fuel cell medium and heavy-duty municipality vehicles, commercial trucks, buses, and specialty vehicles throughout the world.
• VIA Motors International Inc. – Announced in August 2021, a 100% acquisition of VIA Motors by Ideanomics for a base transaction price of US$450 million via an all-stock transaction. VIA Motors is headquartered in Orem, Utah. VIA designs, manufactures and markets electric commercial vehicles, with superior life-cycle economics, for use across a broad cross-section of the global fleet customer base. VIA utilizes a scalable and flexible electric skateboard platform for Class 2, 3, 4 and 5 vans and trucks, along with a modular body approach that enables a capital-light single design for its platforms, drive systems and vehicle models.

Ideanomics Capital

This division focuses on fintech disruption and financial services. Ideanomics 3 investments are:

• Timios Holding Corp. – 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.
• Technology Metal Market (TM2) – A London–based digital commodity issuance and trading platform for technology metals, including those used for EV battery production, energy storage systems, and solar cells.
  
• JUSTLY Markets (formerly Delaware Board of Trade Holdings Inc.) is an equity crowdfunding platform for investors that focuses beyond profit and dividends. It thinks about how the investments made today shape the future of our planet. JUSTLY connects engaged investors and passionate founders who care about ‘social responsibility’ and building thriving businesses. JUSTLY recently partnered with Invest Green to provide insights and clean technology investment opportunities. More details here.

Ideanomics Q3 2021 results announced in November highlight the progress the Company is making. Apart from the new acquisition of VIA Motors, and the increased stake to 70% in Energica, the Q3 result highlights were:

• “Revenues for the quarter ended September 30, 2021, were $27.0 million and gross profit of $4.5 million.
• $256.9 million cash at quarter end providing a deep pool of capital for investment in Ideanomics Mobility & Capital business units.
• Aaron Gillmore (former BYD and Tesla executive) appointed as CEO of WAVE.
• Mani Iyer (former CEO of Mahindra Agriculture Americas) appointed as CEO of Solectrac.
• WAVE received order from AVTA for vehicle-side charging equipment for 28 buses.
• US Hybrid delivered EV power electronics components to several OEMs, including CAT, Pratt & Miller, FEV, and Nova Bus, as well as several powertrain kits for battery electric street sweepers deployed nation-wide.
• Ideanomics China delivered 652 vehicles, with a large order backlog due to supply chain constraints, and entered into agreements to secure first access to thousands of new electric vehicles as they roll off assembly lines.
• WAVE made substantial progress toward final testing of 125kW and 500kW wireless charging systems, which will broaden WAVE’s market reach to additional applications.
• US Hybrid moved to new larger facility to support greater scale of innovation and manufacturing
• Treeletrik moved to a new office and assembly plant to support manufacturing and delivery of its orders.”

Ideanomics CEO, Alf Poor, commented: “This quarter was highlighted by two very important strategic planned acquisitions of VIA Motors and Energica both scheduled to close in the first quarter… The integration of these two companies provides Ideanomics with full OEM capabilities across vehicle types, and positions Ideanomics as one of the only full-service, turnkey, offerings in the market today.“

Closing remarks

Ideanomics really is becoming a powerful force both with their EV related businesses and their capital/financial services businesses.

Certainly, Ideanomics is not an easy company to fully comprehend with just so much going on. Despite this the revenue growth and numbers paint a picture of a growing enterprise. The recent stock price pullback means the stock now trades on only ~3.4x forecast 2023 revenues. That compares to the more flashy EV companies with multiples often over 10x.

It looks like a very good time to take a second look at Ideanomics Inc.

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 15^th 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.

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.

In a recent InvestorIntel interview, Tracy Weslosky spoke with Tony Sklar, Senior VP, Communications of Ideanomics, Inc. (NASDAQ: IDEX) about their investment in Energica Motor Company S.p.A., a leading Italian manufacturer of high-performance electric motorcycles and the sole manufacturer of the FIM Enel MotoE™ World Cup.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Tony went on to say that Energica is one of the few European players to own their own battery technology and explained that its proprietary EV battery and DC fast-charging systems have applications and synergies with Ideanomics Mobility creating value for Ideanomics shareholders.

In the interview, Tony spoke on the two business divisions of Ideanomics – Ideanomics Mobility and Ideanomics Capital. With Ideanomics Mobility the company focuses on the commercialization of electric vehicles. Ideanomics has a sales to financing to charging model. Drawing a parallel with the auto and energy industry, he said as the energy companies that have given value to shareholders for the longest period of time, Ideanomics’ charging solutions is going to have the most impact for its investors.

To watch the full interview, click here

About Ideanomics

Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption. Our Ideanomics Mobility division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under our innovative sales to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions for the financial services industry. Together, Ideanomics Mobility and Ideanomics Capital provide our global customers and partners with leading technologies and services designed to improve transparency, efficiency, and accountability, and our shareholders with the opportunity to participate in high-potential, growth industries.

To learn more about Ideanomics, Inc., click here

Disclaimer: Ideanomics, Inc. is an advertorial member of InvestorIntel Corp.

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

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.

SOURCE:

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

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.

Final Comment

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.

In a recent InvestorIntel interview, Peter Clausi talks to Tony Sklar, Senior VP, Communications of Ideanomics, Inc. (NASDAQ: IDEX) about their commercial electric vehicle enablement platform, specializing in electric fleet management, from finance to purchase to maintenance to end of life.

“We have a business model that is sales to financing to charging”, explains Tony Sklar. “We will get you the best commercial electric vehicle at the best financial floated price. And we will get you the best pre-paid charging to get your fleet up and running as soon as possible.”

Commercial EV fleets are very different from the retail electric vehicle market, Sklar told Clausi. Most of the value of an electric vehicle is in the battery, and since electric vehicle batteries degrade over time, “how do you finance something that doesn’t have a residual value?” This particularly a problem for companies looking to finance an entire fleet of commercial electric vehicles. “What do you do when the battery diminishes?” Sklar asked. “These are the questions that the rest of the ecosystem hasn’t answered. Enter, Ideanomics.”

In this InvestorIntel interview, which can also be viewed on YouTube, Sklar explains that in order to maintain and finance a fleet of commercial electric vehicles there needs to be a pool of liquidity available to operators. “This is all very brand new,” he said, and these “liquidity pools” have only just started to be set up “thanks to Ideanomics and our Executive Chairman Dr. Bruno Wu, who has been kicking in doors and making waves to get these things, and the rest of the world hasn’t caught up.”

Tony Sklar explained that Ideanomics is a services platform. “We participate in the sales, in the financing, and the charging [of commercial EV fleets], and we take our slices along the way.” And because Ideanomics is a services platform and not wedded to any single technology, Sklar says it is “a great opportunity for investors to participate in the upside of EV without the risk of a single battery or a single vehicle.”

To watch the full interview, click here.

Click here to subscribe to the InvestorIntel Channel.

Disclaimer: Ideanomics, Inc. is an advertorial member of InvestorIntel Corp.

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

Source

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

Source

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

Source

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

Source

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.