What happened
Shares of Ideanomics (IDEX -3.23%) soared today after the company announced that one of its subsidiaries, WAVE, anticipates it'll have a reduction in electric vehicle (EV) charging costs, thanks to "recent manufacturing and engineering investments."
The tech stock was up by 15% for the day.
So what
WAVE is developing wireless charging solutions for medium- and heavy-duty vehicles. Some of its technology includes a hands-free charging system that is "embedded in roadways and charges vehicles during scheduled stops."
Image source: Getty Images.
The company said in the press release that its focus on manufacturing and engineering improvements had yielded reduced costs that it will be able to pass along to some of its customers.
"For years, WAVE systems have enabled our customers to match diesel vehicles' range and duty cycle. Passing on newfound cost reductions to our customers with a class-leading warranty immediately provides fleet operators new electrification solutions," WAVE's chief technology officer Michael Masquelier said in the release.
In addition to the cost reductions, WAVE also announced a new charging-as-a-service (CaaS) offering that includes charging hardware and infrastructure, maintenance, and a three-year warranty for the charging technology. Customers will be able to sign up for the CaaS offing for a monthly fee.
Now what
Some investors were clearly happy with Ideanomics' announcement today, but some of that optimism should be tempered by the company's lackluster share performance over the year.
Ideanomics' stock has tumbled 30% over the past 12 months, and today's huge share price spike from just one press release shows just how volatile this stock continues to be.
All of which means that long-term investors may want to be cautious before jumping all-in on Ideanomics' shares.
