Ideanomics Inc. (NASDAQ:IDEX) will be a stock to watch as we expect more M&A activity from the Company in 2021 and beyond
SmallCapPower | February 8, 2021: We first wrote about Ideanomics Inc. (NASDAQ:IDEX) in September 2020, and its stock price has powered more than 380% higher since (to its current price of $5.00). Yet, we anticipate much more upside for this name in the coming months.
Ideanomics is a company with two operating divisions: Ideanomics Mobility and Ideanomics Capital.
Ideanomics Mobility focuses on the global electric vehicle (EV) market through its operating companies and investments including Mobile Energy Global (MEG), Medici Motor Works, Treeletrik, and Solectrac, SilkEV and latest acquisition Wireless Advanced Vehicle Electrification, Inc. (WAVE).
Ideanomics is not an electric vehicles manufacturer per se, although it does own a controlling interest in Malaysia-based Treeletrik, a manufacturer of electric bikes. Instead, it is involved in commercial electric vehicle enablement – helping commercial fleet customers understand how to transition their vehicles, to get through the procurement process, the rebates process, the lease financing process, and ultimately how to set up the charging infrastructure. Commercial vehicles include heavy- duty trucks, logistic vehicles, buses, taxis, etc.
Ideanomics Capital, meanwhile, focuses on data-rich FinTech solutions through its operating companies and joint ventures dbot, intelligenta, Liquefy, Technology Metal Market, and its most recent acquisition, Timios Holdings Corporation.
Timios, in a particular, is a notable deal for Ideanomics as the real estate technology platform, which provides value-add, fee-based services addressing several critical requirements of the home buying and mortgage transaction value chain, generated more than $60 million in revenue for 2020 while retaining about 95% of its clients over the past 10 years.
For 2021, Ideanomics is targeting $100 million in revenue for Timios. And, Timios is expected to generate strong EBITDA from favorable interest rates in the short-to medium-term.
As well, the Company’s MEG division, which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under a unique sales to financing to charging (S2F2C) business model, experienced some solid momentum in Q4 2020, delivering 706 units with 439 units delivered in December alone.
Ideanomics ended 2020 strong, with an announcement that its MEG division and its contracting entity Qingdao Chengyang Medici have signed an agreement with Meihao Chuxing, a joint venture between BYD and Didi, to purchase an initial 2,000 units of model BYD D1, the world’s first custom-built, all electric car specifically for ride-hailing with smart technology, safety, and comfort features for both drivers and passengers.
“The D1 is a very thoughtfully designed ride-hailing EV and is a culmination of the latest design and technology to bring drivers and their customers an enjoyable travel experience. We are very pleased to work with Meihao Chuxing and BYD to promote the sales of the D1,” said Ideanomics CEO Alf Poor in a statement.
“Supported by a viable government subsidy program, the proliferation of EVs in China is a testament to the value that public and private partnerships can bring to large scale global challenges. We look forward to developing these types of partnerships and the rollout of more innovative vehicles like the D1 to our taxi and ride-hailing customers,” he added.
The ride-hailing vehicles are intended for deployment in multiple cities within China, with deliveries expected to begin during the first half of 2021.
And, in keeping with its S2F2C business model, Ideanomics also announced an agreement in January to acquire privately-held Wireless Advanced Vehicle Electrification, Inc. (WAVE), a provider of inductive (wireless) charging solutions for medium and heavy-duty electric vehicles.
Ideanomics believes WAVE and wireless charging is the future of charging, as evident by its more than $7 million in revenues for 2020 along with what the company calls a “robust pipeline” for 2021 and beyond.
Finally, the Company expects to have another big year in 2021, which includes the official launch of Medici Motor Works. Medici is developing a line of zero-emission heavy trucks and buses, as well as other types of commercial vehicles, in partnership with leading original equipment manufacturers.
Medici Motor Works anticipates its battery electric vehicles, which are expected to cost-efficient across several commercial classes, will be ready for sale in North America in 2021.
And, as we expect more M&A activity from Ideanomics for the remainder of 2021 and beyond, this will be a stock to watch.
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