Ideanomics (IDEX) stock forecast for 2022–2027 as EV market expands
Electric vehicle (EV) and fintech company Ideanomics (IDEX) has been told by the stock exchange NASDAQ that it is no longer compliant with its rules over late filing of its financial reports.
The notice has no immediate effect and the company has 60 days to submit a plan to comply. However it could face delisting if it does not become compliant with the Nasdaq Listing Rule. The company said the delay is "due primarily to additional information and investigation needed in relation to the company's China operations in order to complete the audit".
Strangely the move was to trigger a 29% resurgence in the share price to $1.04 although the price has since fallen back to today's (22 March) price of $0.95.
So what is Ideanomics, what makes it different from other EV companies and what is the outlook for its stock?
What is Ideanomics?
The New York-based company operates two divisions: Ideanomics Mobility and Ideanomics Capital. The mobility department acts as a service provider to the auto sector, helping facilitate the adoption of commercial operators via procurement, finance and leasing, or as energy management solutions.
Ideanomics Capital focuses on disruptive fintech solutions for the financial services industry.
Combining the two divisions, Ideanomics can offer customers and partners around the world technologies and services created to expand transparency, efficiency and accountability, and offer shareholders the opportunity to participate in high-potential growth industries.
The company’s leadership team is made-up of professionals from the auto industry, including executives from GM (GM) and Tesla (TSLA).
What does Ideanomics do?
Ideanomics’ synergistic ecosystem spans three key pillars of EV: vehicles, charging and energy.
Shane McMahon, executive chairman of Ideanomics, told Capital.com that “the firm’s strategy is to cut the total cost of ownership for fleet operators while improving their efficiencies and enhancing the overall value chain through the Ideanomics’ ecosystem.”
New offerings leveraging the company’s capital division will help commercial operators shift investments from a capital expenditure (CAPEX) to an operating expenses (OPEX) model, removing barriers to entry into the EV industry.
Ideanomics’ Charging-as-a-Service and Vehicle-as-a-Service offerings aim to change the industry’s financial paradigm and expand opportunities across the EV sector.
IDEX stock analysis year-to-date
IDEX stock hit a 2022 high of $1.44 in early January and a low of $0.87 later in the same month.
In 2021 its stock price ranged from 88 cents to $5.53.
In an interview with Capital.com, Vinod Jain, senior analyst at Aite-Novarica Group, said “the stock could see more volatility due to its current price point”.
However, the market’s departure from fossil-fuel reliance bodes well for electric-vehicle manufacturers, their business service providers and shareholders, while also enhancing Ideanomics’ stock predictions.
Latest IDEX stock news
On 4 November 2021, the EV tech company announced that its subsidiary, WAVE, was showcasing a Wireless EV Charging Technology to potential transit authority customers at the APTA TRANSform Conference & EXPO in Orlando.
WAVE makes high-power wireless chargers that are both hands-free and autonomous-ready.
WAVE is a wireless, hands-free, electric vehicle charging system for transit agencies, ports and warehouse applications. It quickly adds meaningful range and power for battery-electric buses without human intervention or mechanical contact.
Unlike plug-in and overhead charging systems that need time-consuming, hands-on intervention, clutter the ground and can require excessive maintenance, WAVE's rugged pads are embedded in the roadway and hidden.
Within seconds of scheduled stops and natural dwell times, power is transferred over a five to eight-inch air gap to a receiving pad on the vehicle's undercarriage.
Charging is fast and requires no mechanical contact or human intervention.
According to Jain, WAVE could solve the transit industry’s greatest concern in the adoption of electric vehicles. “Wave will provide the industry with immediate power to carry large passenger loads more efficiently,” he told Capital.com.
In other vehicle lines, Ideanomics has the only American-made EV tractor on the market to date.
For their investors, Ideanomics will begin working with Say Technologies to upgrade shareholder communication.
Say Technologies designed a communication platform for investors to exercise their ownership rights. Ideanomics will use Say Connect to solicit questions from investors ahead of the third quarter earnings call.
McMahon said the company’s investors are passionate about a sustainable future, and are extremely engaged with every acquisition, purchase order and partnership.
IDEX stock news is gaining coverage as electric vehicle manufacturing becomes a serious market proposition as names like Tesla and traditional brands expand the industry.
On 2 February Ideanomics was cheered by an order from the Antelope Valley Transit Authority (AVTA) for 19 battery-electric, long-range, ADA (Americans with Disabilities Act) -compliant transit vans.
On 7 March Ideanomics announced it was looking to acquire the Italian electric motorcycle company Energica after announcing that it had secured 93.63% of Energica's shares through a voluntary tender offer. Although subject to regulatory approval the company is hoping to complete the deal by the end of this quarter. Alf Poor, CEO of Ideanomics: "We believe Energica will strongly benefit from Ideanomics resources and continue to be a leader in the electric motorbike industry."
Ideanomics second-quarter earnings report
The revenue peaked at $33.2m, marking the sixth straight quarter of growth. The quarterly results included the first revenues from US Hybrid and Solectrac.
These businesses were acquired late in the second quarter and their financial results are only included from the date of acquisition.
Revenue from electric vehicles was $6.1m, up from $0.7m in the second quarter of 2020. Meanwhile, revenue from charging, batteries and powertrains was $2.7m. No revenues were posted in this category in the corresponding quarter in 2020.
Gross profit for the second quarter reached $9.3m, representing a gross margin of 28%. Over the same period in 2020, gross profit reached $0.3m.
Earnings per share settled at $0.02, down from $0.15 a year ago.
Aite-Novarica’s Jain said the sector is just getting started as “diversification across a range of auto segments and geography are prepping a future for clean energy.
“The next earnings call will be crucial due to the current increase in share price from last year and the pandemic.”
In its quarterly statement ending 30 September the company reported a total revenue of $27.05m, with products making nearly $10m and services $17m. It also reported a gross profit of $4.53. However operation costs were over $56m leaving a net loss of $50.1m.
Emerging EV sector
The electric vehicle market is predicted to increase from 4,093 units in 2021 to 34,756 units by 2030. The sector is powered by a growing demand for low emission commuting and governments supporting long range, zero emission vehicles through subsidies and tax rebates.
The switch in vehicle production has pushed carmakers to offer electric vehicle models for both commercial and private use around the world.
“The shift to EV in commercial sectors has raised a whole new level of challenges,” said McMahon.
Some of the greatest obstacles to growing the EV market include adding infrastructure to EV-ready roads.
While many governments are developing EV charging infrastructure, most countries have not been able to establish a viable working foundation for the mass production and use of electric vehicles.
Currently, the Netherlands has the highest EV charger density per 100km, according to a MarketsandMarkets report.
Another obstacle to establishing electric transportation around the globe is battery life. The report showed the cost of an EV battery in the US was around $1,100 per kWh a decade ago. By 2020, the price plummeted to $137 per kWh.
The price drop is attributed to a reduction in manufacturing costs, decreased cathode material prices and greater volumes of production.Additionally, the prices of EV batteries are predicted to drop further, resting near $60 per kWh by 2030.
Technological innovations like WAVE and the production of EV batteries in large volumes have helped drive down the cost. Batteries for EVs are one of the vehicle’s most expensive parts.
To date, WAVE technology is being used by public transportation in California and is the next likely move for Michigan as the state’s governor looks for ways to create roads that will charge EVs while in use.
(22IDEX stock forecast amid limited analyst coverage
Analyst coverage of Ideanomics is limited, with only two companies, Roth Capital and Cantor Fitzgerald, offering an IDEX stock prediction, according to the data from MarketBeat.
With a consensus price target of $5 that suggests an upside of 419% from today's (22 March) price of $0.96. Not surprisingly perhaps both rate it as a 'buy'.
Jain told Capital.com that “based on current financials and analysis, the price would not break the $2.50 share price barrier anytime soon.”
He added that “since the losses are limited, the long-term buy would be a good option for side potential gain.
Note that analysts’ predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Ideanomics stock forecast 2022–2027
Although analysts don’t provide long-term IDEX stock predictions on 22 March Wallet Investor’s algorithm-based service predicted that the share price will trade at $0.79 by this time next year falling to $0.64 in five years.
Note that algorithm-based predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research and past performance does not guarantee future returns. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
FAQs
Will IDEX stock go up or down?
There are multiple factors influencing the share price. In April 2021, Roth Capital gave IDEX a price target of $7, suggesting there could be a potential upside to the stock.
Before the share price can maintain steady gains, Vinod Jain, senior analyst at Aite-Novarica Group, said “the company needs to have positive net income to break the current barrier price of $2.50”.
Note that analyst predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
Is Ideanomics a good investment?
While traditional roadways lack supportive footing for the mass transit of electric vehicles, Vinod Jain, senior analyst at Aite-Novarica Group, said that demand is growing and the auto sector’s endgame is inevitable, despite a few concerns.
“The Ideanomics’ product offering looks promising, but investors should consider the high infrastructure and capital costs,” he said.
There are still obstacles to growing the EV market, including outfitting infrastructure with EV-ready roads, which could pose risks to the stock.
Note that analyst predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.
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