Ideanomics (IDEX) Stock Is Flying On Vehicle Sales

Ideanomics IDEX Stock News

Ideanomics Inc (NASDAQ: IDEX) is flying in the market this morning, trading on gains of around 50%. The gains come after the company announced that it has sold thousands of vehciles at the MEG expo center in Qingdao. Here’s what’s going on:

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IDEX Stock Rockets On Vehicle Sales

In the press release, Ideanomics said that its audo dealers in its subsidiary, Mobile Energy Global’s expo center, have sold 2,139 vehicles. The sales generated a total of about $33 million.

Importantly, in China, October through January are the hottest months to buy cars. The company said that in the first five weeks of being operational, the dealers at the MEG center received high levels of interest. Also, IDEX expects that it will achieve its target of RMB 1 Billion in sales throughout the year 2020.

This is a huge milestone, especially when we consider that China, like the rest of the world, has been negatively impacted by the COVID-19 pandemic. While restrictions have begun to relax, businesses are struggling to recover.

Nonetheless, in this tough environment, IDEX is seeing strong demand for its vehicles. Moreover, the local government provided the facility rent free, helping to keep costs low.

In a statement, Dr. Bruno Wu, Chairman at IDEX, had the following to offer:

The region loosened restrictions on business activities in early May, so we are very pleased with the Center’s high levels of activity at this early stage. The Center’s solid customer foot traffic indicates that the country’s economy is on a steady path to recovery and there is a strong appetite for passenger and commercial vehicle sales which bodes well for MEG. The initial activity combined with the projected growth for the remainder of 2020 reinforces our belief that the MEG Center will be a material source of revenue for Ideanomics.

This News Is Huge

The news out of Ideanomics this morning was overwhelmingly positive. After all, while the world continues to cope with the COVID-19 pandemic, the company’s vehicles are being sold and money is being generated to the tune of $33 million in the very beginning of this venture.

As the COVID-19 pandemic passes and economies continue to improve, we’re likely to see further growth in sales, helping the company to reach that RMB 1 million in sales it expects to see in 2020. As such, IDEX stock is one that should be watched closely.

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