- The increased driving range and expansion of charging outlets are expected to trigger widespread adoption of EVs, including commercial EVs
- The commercial EV segment is projected to grow at a 41.1% CAGR from 2020-2028 and is likely to influence the purchase of other types of EVs, further benefiting Ideanomics’ Mobility division
- Ideanomics Capital division, through wholly owned subsidiary Timios, is set to benefit from the pandemic-driven growth currently being witnessed in the housing market
The global electric commercial vehicle market is expected to grow at a CAGR of 41.1% from 2020 to 2028, reaching a little over 2 million units in sales on the back of advancements in battery technology, electrification of public transportation fleets and stricter government regulations on pollution, per a Research and Markets forecast (https://ibn.fm/AZ0TM).
Similarly, a 2020 Deloitte article (https://ibn.fm/UAh8f) noted that the removal of two of the biggest barriers for consumers, namely driving range and the lack of charging infrastructure over the next few years, portends good tidings for the electric vehicle (“EV”) industry. The article further observed that the proliferation of commercial EVs (lorries, trucks and vans) and mass transit vehicles (buses) would instill even more confidence in consumers as to the reliability of EVs, influencing them to purchase the other types of EVs.
Based on these predictions, Ideanomics (NASDAQ: IDEX) is positioned favorably, given its Ideanomics Mobility division is focused on the EV market. This division comprises over five companies, including Medici Motor Works, which operates in the electric commercial vehicle segment, offering zero-emission trucks, vans and buses. Others are Mobile Energy Global (“MEG”), Wireless Advanced Vehicle Electrification (“WAVE”), Treeletrik, Energica, Solectrac and Silk EV.
“2020 was the year for passenger EV… But 2021 is the year that the commercial (‘EVs’) start to become mainstream; this is when companies like Ideanomics and others are going to shine,” stated Ideanomics CEO Alf Poor in a presentation at the 23rd Annual Needham Growth Conference (https://ibn.fm/H74nP) earlier this year. Alf went on to quote Bloomberg New Energy Finance (“BNEF”), which estimates that global commercial EV sales will reach 1.2 million units in 2023.
Ideanomics, which wholly owns Medici Motor Works, is set to capitalize on this expected growth in demand, which is projected to remain consistent through 2040, per BNEF’s long-term electric vehicle outlook. By 2040, EVs will account for 67% of all public buses and 24% of all light commercial vehicles. At the same time, Ideanomics’ Treeletrik and Energica subsidiaries, manufacturers of two-wheelers, will also benefit as 47% of all motorbikes sold in 2040 will be electric (https://ibn.fm/VXfmf).
The future also holds great promise for IDEX’s second division, Ideanomics Capital, which focuses on providing disruptive fintech solutions covering a broad range of financial services. The division is made up of five companies: Timios, DBOT, Liquefy, Intelligenta and Technology Metals Market (“TM2”). In his presentation, Alf singled out Timios, praising its data-driven approach to closing more property refinancing and purchasing within the broader real estate sector.
But, why Timios? What has made real estate stand out? The housing market is currently “in a frenzy like no other since the 2008 crisis”, occasioned by higher demand for housing than there is supply (https://ibn.fm/eXDbm). The pandemic is credited for this phenomenon because some companies relocated at the height of the outbreak, causing surges in demand for housing in certain cities. Further, the work-from-home policy encouraged employees to upgrade their homes, either through renovations or by purchasing new homes, with the latter contributing to the surge in demand (https://ibn.fm/Q6can).
Remarkably, in his presentation, Alf had foreseen this imminent vibrancy of the housing market, which, as he had observed, would greatly favor Timios. “Companies like Timios can make a lot of money. These guys made $3 million EBITDA in December alone. So, we’re going to expect big things from them,” Alf added. Over the coming period, Ideanomics plans to inject more capital into Timios to help it grow more efficiently.
For more information, visit the company’s website at www.Ideanomics.com.
NOTE TO INVESTORS: The latest news and updates relating to IDEX are available in the company’s newsroom at https://ibn.fm/IDEX
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