Shares of Ideanomics were trading higher Monday after the small-cap company announcing a large purchase of electric vehicles customized for ride-hailing in China.
What Happened: Mobile Energy Global, a subsidiary of Ideanomics Inc IDEX, announced it is purchasing 2,000 D1 units from Meihao Chuxing.
The D1 is BYD’s custom electric ride-hailing vehicle and the first built specifically for the market. The vehicle features smart technology, safety and comfort measures for drivers and passengers.
Meihao Chuxing is a joint venture between BYD and Didi Chuxing. BYD — which is 25% owned by Berkshire Hathaway (NYSE: BRK-A)(NYSE: BRK-B) — owns 65% of the joint venture.
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Why It’s Important: Passengers will be able to hail the customized car in multiple Chinese cities through the Didi Chuxing app.
The D1 electric vehicle has 260 miles of range and comes with a top speed of 81 mph.
The Ideanomics subsidiary projects that the taxis and shared vehicles market will reach $30 billion by 2025. The company is seeking to assist fleet operators in obtaining electric vehicles. The MEG business receives fees on electric vehicle sales.
MEG also can help with financing and selling energy for commercial and passenger vehicles.
The new purchase by the Ideanomics segment could help boost the company’s revenue going forward as it works as a partner in the growing ride-hailing market.
IDEX Price Action: Shares of Ideanomics were trading 12.11% higher at $2.54 at last check Monday.
The BYD D1 electric vehicle. Photo courtesy of Ideanomics.
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