The commercial electric vehicle (EV) and fintech operator Ideanomics, Inc. ( IDEX (NYSE:)) has been trying to diversify its portfolio by making strategic deals. However, given its unprofitability and financial weakness, will its diversification efforts help the stock? Read on.Ideanomics, Inc. (IDEX) facilitates the adoption of commercial electric vehicles (EVs) and develops financial services and fintech products. Its share price has climbed 43.2% year-to-date on investors’ optimism over the EV industry’s prospects.
However, IDEX’s stock price had retreated 26.2% over the past three months because of the company’s decision to report its expected sales for its Mobile Energy Global (MEG) segment quarterly rather than monthly.
Even though the company has made strategic acquisitions to enhance and strengthen its portfolio, it remains unprofitable. IDEX’s Malaysia-based E-bike subsidiary Treeletrik recently inked a multi-year deal to serve the ASEAN region. Despite this positive development, the company’s unimpressive financials don’t justify its high valuation. Given that IDEX’s EV business is struggling in the crowded EV space, we think its growth potential looks bleak.
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