The company has acquired a 15% stake in Solectrac and schedules the Q3 earnings call on Nov. 9, 2020.
Ideanomics, Inc. (IDEX) recently announced that it has acquired a 15% stake in Solectrac, Inc., a California-based e-Tractor company. Following this announcement, IDEX surged significantly being one of the most traded stock in the market today as it continues the bullish momentum.
Ideanomics stock was trading as high as $1.13 today after the investment news. As we write this at 12:07 P.M. EDT, IDEX was trading at $1.00 soaring at a rate of 18.15%. The market capitalization has increased to $237.27 million while the trading volume is also on a rise currently around 32 million.
The company reported that it has acquired 15% of Solectrac for a consideration of $1.3 million. Solectrac is an e-Tractor firm which has developed 100% battery powered, all electric tractors for agriculture and utility operations. The e-Tractor company aims to offer farmers pollution free tractors with price volatility associated with fossil fuels.
According to Research and Markets, the global agricultural tractor market is currently worth $75 billion and with the electric vehicle market growing at a rapid pace, the e-tractor market is poised for swift growth in the coming years. The North American agricultural tractor market is expected to cross $20 billion by 2023.
Solectrac has a strong command over the market with its initial three models that address the broad needs of the industry. Currently, the largest segment for agricultural tractors is below 40HP and the company is controlling that segment.
The investment of Ideanomics in Solectrac will expand its global footprint in the EV industry, mostly in specialty commercial vehicles. This investment is the first of its type in an existing U.S.-based OEM. Ideanomics will hold a strong position in Solectrac’s Board of Directors.
The Chief Executive Officer of Ideanomics, Alf Poor commented that Solectrac is a pioneer in e-tractor market and has a bright future ahead. Poor added:
“We are very impressed with Steve and the Solectrac team and their deep knowledge of the agricultural sector. We have been interested in this industry for some time because we knew EVs could have an immediate impact without the need for extensive infrastructure.”
Solectrac’s tractors are specially designed to serve the demand of community-based farms, equestrian arenas, hobby farms, vineyards, greenhouses, and orchards.
Solectrac believes that its unique experience and industry perspective in collaboration with Ideanomics will help them achieve their goals. The founder and CEO of Solectrac, Steve Heckeroth said:
“With our zero-emission electric tractors, tractor operators don’t have to choose between power and environmentally friendly practices.”
In addition, Ideanomics, Inc. (IDEX) has also updated regarding the release of its third-quarter 2020 financial results. The company has scheduled to host a conference call on Monday, November 9, 2020, at 4:30 PM EDT. Ideanomics will issue a press release prior to the conference call reporting the quarterly earnings results.