Please ensure Javascript is enabled for purposes of website accessibility

Why Ideanomics Stock Jumped Today

By Evan Niu, CFA – Oct 22, 2020 at 4:06PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company invests in an electric-tractor maker and schedules its next earnings release.

What happened

Shares of Ideanomics (IDEX 6.54%) have jumped today, up by 12% as of 3:30 p.m. EDT, after the company said it invested in electric-tractor maker Solectrac. Ideanomics also scheduled its third-quarter earnings release.

So what

Ideanomics has acquired a 15% stake in Solectrac for $1.3 million, saying that the deal will expand its global footprint in the electric vehicle industry by giving it exposure to specialty commercial vehicles. It will also get a seat on Solectrac's board of directors.

A Solectrac electric tractor

Image source: Ideanomics.

The global agricultural tractor market is worth an estimated $75 billion, Ideanomics notes, with North America's portion expected to grow to $20 billion by 2023. Solectrac's electric tractors are positioned as an alternative to traditional diesel tractors, particularly for the segment of the market for vehicles with less than 40 horsepower.

Now what

Ideanomics has been growing its deliveries of commercial electric vehicles in China. The company said earlier this month that it had delivered 423 units in September, bringing total deliveries for the third quarter to 626. There are an additional 440 units that were invoiced in the third quarter and are pending delivery. Short-sellers have also targeted the company with allegations of fraud.

The company is planning to announce third-quarter results after the market closes on Nov. 9.

Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.