Ideanomics (NASDAQ: IDEX) shares dropped 3.5% after the company announced the acquisition of Solectrac Inc., enhancing its mission of reducing commercial fleet carbon emissions. Electric is a premium zero-emissions electric tractors manufacturer and distributor that employing renewable energy sources.
Ideanomics looking to grow Solectrac
Ideanomics will provide operational confidence to Solectrac across numerous business processes, allowing the company to develop and establish itself as a global leader and clean agricultural equipment supplier. Already Solectrac has a significant lead in the electric tractor market in North America, with little competition, and their commitment to ESG initiatives coincides with Ideanomics’. Accelerating the deployment of zero-emission commercial electric vehicles, accountability, transparency, and environmental sustainability are among the commitments.
Solectrac adds to Ideanomics’ EV ecosystem by providing a premium offering in the fast-growing agriculture industry, which is on the verge of adopting electric vehicles. Notably, the Solectrac electric tractor portfolio is completely scalable and market-ready in the United States, where demand already exists. Solectrac will utilize the proceeds from the acquisition to boost inventories, diversify and strengthen the supply chain, boost production capacity, hire additional management, and drive marketing and sales initiatives.
Solectrac shares the same sustainability goals as Ideanomics.
Ideanomics CEO Alf Poor said that the company’s EV and Mobility initiatives are well-matched with the Solectrac acquisition. They align not only in terms of overall performance and torque but also in terms of reliability, environmental impact, and running costs considering electric tractors have proven superior to diesel counterparts. When it comes to EV projects, electric tractors are an underrepresented segment. Alf said they are delighted to welcome Steve Heckeroth and the Solectrac team to Ideanomics. They are looking forward to making Solectrac the trustworthy, go-to brand globally, with business operators and farmers strife to switch from diesel to sustainable clean alternatives.