Ideanomics (IDEX) stock has recently begun to rebound slightly after more than two months of continuous decline. So, should investors buy it now?
About Ideanomics and its moves
Ideanomics is a diversified company, but its most profitable is its electric vehicle business, which mainly provides vehicle procurement, charging infrastructure, and energy management solutions for commercial fleets.
However, these solutions or services were build through its acquisitions and investments. For example, the company has acquired 20% of Italian Energica Motor Company (Energica) for the consideration of $13.2 million for expanding its global footprint in EV industry. And it acquired WAVE in January 2021, a market leader in inductive charging systems.
Ideanomics also acquired Treeletrik, a Malaysian home-grown EV maker. Recently, Treeletrik has signed a partnership to supply 200,000 units of its 100% electric motorbikes to Indonesia via distributors for supporting ASEAN's energy transition agenda.
About Ideanomics‘s finance
Ideanomics is actively advancing the layout of EV market and EV charging infrastructure. The company's EV revenue in 2020 was $19.5 million versus $2.7 million in 2019, an increase of $16.8 million.
Although Ideanomics has an increase of 600% for 2020 in EV revenue, it is still unprofitable. At the end of 2020, the company has 419.3 million outstanding shares. Such substantial dilution that caused its investors to concern about the stock. So, its $1 billion market value that seems a bit high.
Ideanomics is different with most EV makers which focused on cars and trucks, IDEX is finding opportunities in tractors and motorcycles and entering ASEAN country markets, but these moves need to be converted into profits, that can support the continued rebound of its stock.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.