One of the more notable movers in the market on Wednesday was that of the Ideanomics Inc (NASDAQ:IDEX) stock. After the company reported its financial results for the third quarter late Monday, the stock took a dive and by afternoon it had nosedived by as much as 7%. Hence, it did not come as a surprise that Ideanomics was the subject of the latest video from RICH TV.
Thirs Quarter Review
In order to discuss the company’s third-quarter results, the RICH TV host was joined by Ideanomics’ senior vice president of communication Tony Sklar. It was a frank discussion in which Sklar spoke about the challenges and also the prospects of the company in the near term.
Ideanomics is involved in the electric vehicle business and much of its $10.6 million revenue in the third quarter was generated by its MEG (Mobile Energy Group) business. That particular arm of the business is involved in distributing electric vehicles to the end-user.
Operating losses came in at $12 million while the gross profits stood at $700,000. Ideanomics revealed that the lower quantum of gross profits was the main reason behind the significant operating losses. However, as Sklar pointed out during the discussion with RICH TV, the number of orders has also dried up.
While Sklar spoke about the challenges being faced by Ideanomics, he was also quick to point out that improvement is being seen. Many clients who were expected to pick up their new fleets of cars at the beginning of the year are now returning with their orders. Hence, it seems that Ideanomics’ performance might improve in the coming quarters. Sklar also stated that Ideanomics remains a ‘good growth story’ and seemed to suggest that the performance in the third quarter was perhaps an aberration.
He went on to state that there is a lot of business activity that is going on at this point in time in the electric vehicle industry and Ideanomics is an active participant in those pursuits. Despite the current performance and the decline in the share price, the company seems confident about its long term future. Investors could do well to keep a close eye on the stock over the course of the coming weeks.
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