Ideanomics, Solectrac complete industry-leading delivery of electric tractors to major fleet operators

Rhea-AI Summary

On October 4, 2022, Ideanomics (Nasdaq: IDEX) announced that its subsidiary Solectrac secured new business-to-business contracts for electric tractors. Solectrac will supply 17 e25 tractors to the University of California Agriculture and Natural Resources and a private plant nursery. With government incentives and rising diesel fuel costs, electric tractors are predicted to capture a significant market share, potentially exceeding $100 billion by decade's end. The company aims to enhance its manufacturing capabilities and plans to launch a new model in 2023.

Positive

• Secured contracts for 17 electric tractors, enhancing revenue streams.
• Electric tractors positioned to benefit from government incentives and rising diesel costs.
• Targeting high-value agricultural markets for direct sales.
• Plans to launch a new tractor model in 2023.

Negative

• None.

NEW YORK, Oct. 4, 2022 /PRNewswire/ -- Ideanomics (Nasdaq: IDEX), a global company focused on accelerating the commercial adoption of electric vehicles (EV), today announced that its subsidiary Solectrac secured significant new business-to-business contracts to supply electric tractors to customers operating large fleets. Solectrac has provided a combined total of 17 powerful, zero-emission and quiet e25 tractors to the University of California Agriculture and Natural Resources and a leading private sector plant nursery. 

"Our sustained investment to grow the Solectrac brand means that right now we are uniquely positioned to meet the big orders for electric tractors from large fleet operators," said Robin Mackie, Ideanomics Mobility president. "This is an important, new revenue stream for us, building on the strong value already coming from the fast-growing Solectrac dealer network." 

Capitalizing on momentum, Solectrac is pursuing several high-value opportunities to supply its tractors to leading agricultural companies. These large volume sales will be conducted directly with customers or collaborating with Solectrac dealers. Solectrac targets specialty agriculture, parks, municipalities and university market segments for direct sales.

The Association of Equipment Manufacturers (AEM), an industry group tracking retail tractor sales, reports that tractor sales with less than 40 PTO hp exceeded 127,000 units so far this year*. Solectrac offers the e25g in the under 40 PTO hp category. Solectrac electric tractors do everything equivalent to a diesel tractor except better with zero pollution from burning expensive diesel fuel.

The combination of government incentives, volatile diesel fuel costs and corporate commitments to climate actions will accelerate the growth of electric machinery in the off-road market. Ideanomics anticipates a significant rise in market share of electric tractors in a segment forecasted by Zion Research Investment and other firms to exceed $100 billion before decades end.

Solectrac is ready to grow its industry-leading position. The Solectrac brand will introduce a new model in 2023, and Ideanomics has invested in new facilities and partnerships to enhance manufacturing, assembly and distribution capabilities significantly. Recently, Solectrac introduced its SolecSave app, offering customers total cost of ownership data, environmental statistics, and a way to find incentive programs in their locations.

Ideanomics is solving the complexity of fleet electrification by bringing together high-performance electric vehicles, charging infrastructure and financing solutions under one roof. The Company views Solectrac's electric tractors as a flagship solution for the fast-growing, high-value off-road vehicle market.

*Association of Equipment Manufacturers, Ag Tractor and Combine Report, August 2022

About Ideanomics
Ideanomics is a global group with a simple mission: accelerating the commercial adoption of electric vehicles. By bringing together vehicles, charging, and financing solutions under one roof, we are the one-stop partner needed to simplify the transition to and operation of any EV fleet. To keep up with Ideanomics, please follow the company on social @ideanomicshq or visit https://ideanomics.com.

Safe Harbor Statement
This press release contains certain statements that may include "forward-looking statements". All statements other than statements of historical fact included herein are "forward-looking statements." These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties, and include statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; and other risks and uncertainties disclosed under the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Contacts:  
Ideanomics, Inc.   
Tony Sklar, SVP of Investor Relations 
1441 Broadway, Suite 5116, New York, NY 10018
ir@ideanomics.com

Theodore Rolfvondenbaumen, Communications Director
Trolfvondenbaumen@ideanomics.com

 

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SOURCE Ideanomics

FAQ

What recent contracts did Ideanomics secure for its electric tractors?

Ideanomics secured contracts to supply 17 e25 electric tractors to the University of California Agriculture and Natural Resources and a private plant nursery.

What is the projected market size for electric tractors?

The electric tractor market is projected to exceed $100 billion by the end of the decade.

How will government incentives impact electric tractor sales?

Government incentives, along with volatile diesel costs, are expected to accelerate the growth of electric machinery, including tractors.

What model is Solectrac planning to launch in 2023?

Solectrac plans to introduce a new model of electric tractor in 2023.