Ideanomics (NASDAQ:IDEX) stock plummeted by as much as 18% today but recovered later in the day, gaining 5.9% as of 3:18 p.m. EST.
The tech stock may have experienced a wild share price swing today after the company announced that its subsidiary, Tree Technologies, hired a new chief financial officer.
Most companies don't usually experience such big share price movements because of new management, but Ideanomics' stock tends to react wildly to company-related news -- whether it's significant or not.
Today's share price fall and then subsequent rise came as Ideanomics said it had hired Richard Teoh, who formerly worked as the director of group finance controlling at Volkswagen Group Malaysia, to be the new CFO of Treeletrik.
Treeletrik CEO Datuk Viswanathan Menon said in a press release, "We have ambitious plans for Treeletrik's growth, and Richard's financial leadership, combined with his experience in relevant industries such as automotive, manufacturing, and construction, will help the company meet its growth objectives."
The Treeletrik brand sells electric scooters and became a part of Ideanomics' brands when the company acquired a controlling stake in Tree Manufacturing in March 2019.
Ideanomics' stock plummeted yesterday on seemingly no company-related news. Investors may have sold off some of their shares after the company's stock spiked 239.5% in November. Investors' erratic reaction to Ideanomics' press release today shows just how volatile this stock can be, which means long-term investors may want to keep their distance from this company.