Shares of Ideanomics, Inc. (NASDAQ:IDEX) were plummeting today as investors reacted to a short-seller tweet by Hindenburg Research. The company's stock was down as much as 15.5% by midday.
As of 12:38 p.m. EDT, Ideanomics shares had fallen 13.5%.
Hindenburg Research, which specializes in finding publicly traded companies to short, sent out a tweet saying that it was short Ideanomics and that the company is "heading near its March lows of $0.30 if it somehow avoids a regulatory halt that could see its shares go lower."
We are short $IDEX and believe it is heading near its March lows of $0.30 if it somehow avoids a regulatory halt that could see its shares go lower.$IDEX has a history of changing biz models and pumping-then dumping-each new endeavor. Its move into EVs will be no different— Hindenburg Research (@HindenburgRes) June 25, 2020
Ideanomics' stock recently regained compliance with Nasdaq's minimum bid price of $1 for 10 consecutive days. Hindenburg Research apparently doesn't think the company will be able to hold on to that compliance.
Hindenburg's comment about Ideanomics changing business models refers to the company originally being founded as a video content company, before adding in blockchain financial technology, and now working on electric vehicles.
The tweet clearly spooked some investors, which have already been pushing the company's stock down over the past couple of days. On Tuesday, Ideanomics' stock fell after the company filed a mixed-shelf registration to raise up to $250 million, which could dilute the value of the company's existing shares.
Ideanomics shares have swung wildly over the past few days, and today's response to Hindenburg Research's tweet is no different. With so much volatility surrounding this company's stock, investors can likely expect more instability ahead.