Shares of Ideanomics (NASDAQ: IDEX) are hovering at present after the corporate introduced that it is investing extra money into the electrical tractor firm Solectrac.
The tech stock was up by an eye-popping 87% early at present, and settled to a 57.1% acquire as of 11:32 a.m. EST.
Ideanomics mentioned in a press launch at present that the corporate is making a further $1.three million funding in Solectrac. This funding comes on the heels of an preliminary funding that Ideanomics made within the firm on the finish of October.
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Ideanomics’ unique funding gave it a 14.7% stake in Solectrac, and the brand new funding bumps its possession within the firm as much as about 22%, as soon as all the things is finalized.
Buyers have been excited to see the corporate broaden additional into this house, possible as a result of Ideanomics estimates that electrical tractors will “disrupt the $75 billion international agricultural tractor business.”
Alf Poor, the CEO of Ideanomics, mentioned within the press launch, “We consider Solectrac has monumental potential and, given the uptick in each product inquiries and funding curiosity they’re seeing, we exercised our rights to extend our stake so we may help Solectrac scale to satisfy anticipated market demand.”
An organization nabbing a bigger stake in one other firm is critical information. However Ideanomics’ announcement would not seem to justify the meteoric rise of its stock price at present. The stock has taken some wild swings over the previous yr (and over the previous a number of years, for that matter), and at present’s huge bounce needs to be extra of a warning signal for some traders, somewhat than trigger for celebration. Simply because it did final week, this stock seems to maneuver on easy press releases.
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