Shares of Ideanomics (IDEX -5.13%) climbed on Friday, furthering the tech stock's rapid ascent so far in 2021. By the close of trading, Ideanomics' share price was up 5.9% after rising as much as 30.5% earlier in the day.
Ideanomics' shares are already up more than 56% so far in 2021. Investors have bid up its stock after Ideanomics said on Tuesday it reached a deal to acquire Wireless Advanced Vehicle Electrification, a provider of inductive (wireless) charging solutions for medium- and heavy-duty electric vehicles (EVs).
"Fast, safe, in-route charging is key to enabling commercial EVs to match the range of internal combustion vehicles," WAVE CEO Michael Masquelier said in a press release announcing the deal. "Joining the Ideanomics family will allow WAVE solutions to rapidly develop at the scale needed to help fleet operators around the world meet their zero-emission goals."
On Friday morning, Ideanomics' stock jumped ahead of CEO Alf Poor's presentation at the FORCE Family Office & Roth Capital Partners EV Symposium. "2021 will be the breakout year for commercial Electric Vehicles," Poor said in a press release. "We are excited to discuss our recent acquisition WAVE alongside our industry peers as we speak about the future of EV infrastructure."
Ideanomics' stock price, however, subsequently pulled back after Poor's remarks.
Investors are understandably excited about the potential of the electric-vehicle market, which is poised to grow rapidly in the coming years. However, Ideanomics is one of the more volatile EV-related stocks, and its share price tends to react violently to press releases and other news. It's a high-risk stock, and thus inappropriate for most investors.