Ideanomicsjust made a follow-on investment of $1.3 million. Increasing its stake in Solectrac is a statistical move from the fintech firm. The market for e-tractor is expected to disrupt $75 billion agricultural tractor sector worldwide.
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IDEX made an upward movement on Friday, but it was without anything happening from the Ideanomics side. The stock is rallying once again today and with higher momentum.
IDEX is trading at the top-spot with the highest volume of 190 million compared to the average of 8.8 million. The stock pushed higher in the premarket after the company reported that it has increased its stake in Solectrac, Inc.
Shares of Ideanomics kicked off the session at $2.09 as the stock trades in the day’s range of $2.08-$2.88. As we write this at 12:29 P.M. EDT, IDEX was trading at $2.57 soaring by 66.88%.
The fintech firm has made an additional investment of $1.3 million in the California-based electric tractor company. The company has made a follow-on investment after it first bought the stake in Solectrac, back in Oct. 2020.
This investment is based on the ESG fundswhich are expected to close in the next few weeks. Previously, IDEX acquired 14.7% of the e-tractor at an aggregate amount of $1.3 million. The company has observed a boost in product and investment inquiries since this investment.
Ideanomics interest in Solectrac has increased due to the expanding EV market. Solectrac targets a specific segment of auto vehicles and that’s why it is creating a niche in that specific segment.
IDEX has invested in such a company whose aim isto develop a clean energy tractor. Solectracwants to help the agriculture sector by providing a pollution-free tractor to expand its ecosystem. The e-tractors are expected to make a major difference to the $75 million global agricultural tractor industry.
The Chief Operating Officer of Ideanomics, Alf Poor stated:
“We believe Solectrac has enormous potential and, given the uptick in both product inquiries and investment interest they are seeing, we exercised our rights to increase our stake so we can help Solectrac scale to meet anticipated market demand.”
The global fintech now owns 24% of Solectrac, which will lower to almost 22% post-money after the finalization of additional third-party investment.
Based on the equity method for U.S. GAAP accounting principles, Ideanomics can increase its share of ownership sufficiently to acknowledge its stake in the e-tractor maker.
Solectrac specializes in manufacturing 100% battery-powered e-tractors—a potential solution against diesel tractors—for both utility and agriculture operations. The company has already attracted some notable ratings since its incorporation in 2019. Earlier this year, it obtained the World Alliance Solar Impulse Efficient Solutions label from the Solar Impulse Foundation. That label was based on providing an economical and environment-friendly solution.
Above all the positive news and future prospects of Ideanomic, Inc. (IDEX) with Solectrac, the investors must follow IDEX keenly. The stock might end up dipping after such a wild swing today, as it has happened in the past few years. One major reason is that IDEX has been trading higher lately without any major news.