Shares of the technology company Ideanomics, Inc. (IDEX) get a boost last week on Monday following reports of an investment in Solectrac, an electric tractor maker. The positive news drove the stock price to surge over 100% in two days bringing the price to $3.15 at close on Tuesday November 24.
But in following sessions, company’s stock gradually lost, which resulted in drop of nearly -16% over the past week. Ideanomics is investing in Solectrac an estimated $1.3 million dollars. In October 2020, Ideanomics made its first investment and now its stake in Solectrac has risen to about 22 percent. As the industry is promising and the global tractor market is $75 billion, investors have taken the news favorably
The management of Ideanomics claims that Solectrac has tremendous potential, as shown by the increasing number of orders for products from the company, as well as the interest of investors. Ideanomics expects investments in creative company will be beneficial for it.
The business model of Solectrac really sets itself apart from the competition. With a new chassis, the company produces the easiest possible all-electric tractor, which is safer and more comfortable, even for older farmers.
In the United States in the late 1970s, the average age of farmers exceeded 50 years and is currently close to 60 years. Therefore in the future of robotics, electric tractors are an unavoidable route for industry growth.
Ideanomics aims to anticipate technological developments and make investments in the right direction. A year ago, Ideanomics entered into an agreement with Anhui Jianghuai Automotive Group Corp., Ltd. (JAC), one of the oldest automobile firms in China.
In the field of blockchain and artificial intelligence, IDEX has a range of digital technologies that are used to increase sales through social media, video games, cross-sales, viral coupons and much more. This is an advantageous business that Ideanomics uses to invest in promising innovations, among other things.
Ideanomics, Inc. (IDEX) stock closed Wednesday trading at a gain of 5.91% to reach $2.33.