Shares of Ideanomics (IDEX 10.58%) have tanked today, down by 24% as of 12:05 p.m. EDT, after the company reported second-quarter earnings. Total revenue declined significantly and Ideanomics swung to a net loss.
Revenue in the second quarter plunged 68% to $4.7 million, which resulted in a net loss of $26.4 million, or $0.15 per share. Sales were up on a sequential basis, as the electric vehicle distributor has started to fulfill orders and deliver vehicles to customers through its Mobile Energy Global (MEG) segment.
"We are very pleased with the pace of our sales growth in the new energy vehicle industry," CEO Alf Poor said in a statement. "As the rate of global electric vehicle (EV) adoption continues to rise and technology advancements make EVs more accessible, our Sales to Financing to Charging (S2F2C) business model is positioned to add value for commercial fleet operators in all areas of their business."
Ideanomics finished the quarter with approximately $36 million in cash and cut its debt in half. The company also said that it has removed the going concern qualification from its financial statements. In regulatory filings for the first quarter, Ideanomics warned that its low cash position and other factors "raise substantial doubt about the Company's ability to continue as a going concern." In the most recent filing, Ideanomics now says it "has the ability to continue as a going concern." A going concern is an accounting term for a company that is financially stable and has enough cash to operate.
Ideanomics has also been under attack from short-sellers.