IDEX Stock News: Ideanomics Inc gives a fight to short-sellers, worth only a quarter of WKHS
|- NASDAQ: IDEX has surged by over 23% on Wednesday, closing at $1.56.
- Ideanomics Inc is battling accusations of misleading shareholders but has defied short-sellers.
- Rival Workhorse is trading at around four times IDEX's value, providing hope for bulls.
NASDAQ: IDEX has continued defying gravity – and the wrath of some interested parties. Robbins LLP, a law firm specializing in shareholder rights, has officially filed a class action complaint against Ideanomics for allegedly violating the Securities Exchange Act of 1934 and misleading investors.
According to the filing, Ideanomics said that its Mobile Energy Global center in Qingdao has a capacity of 18,000 vehicles. However, Hindenburg Research later showed that the firm manipulated photos to suggest it owns and operates the facility – for the sole purpose of pushing the stock price higher.
Shares indeed jumped on the hopes and dropped amid the revelations, but this week's lawsuit seems to have done little to deter investors.
Ideanomics Inc stock
NASDAQ: IDEX bounced from the lows and closed at $1.56 on Wednesday, up some 23%. Pre-market trading on Thursday suggests a minor drop of two cents after that surge.
The entire Electric Vehicle sector is experiencing a wild ride. The coronavirus crisis has accelerated the demand for private cars and delivery vans – as people prefer avoiding public transport. The trend to go green has also been steady in recent years and Elon Musk's Tesla garnered interest.
Several rivals have popped up, and one of them is Workhorse Group Inc. (NASDAQ: WKHS) which is worth around $1.18 billion, even after the recent decline from the highs – despite the CFO calling Workhorse's valuation cheap.
Ideanomics Inc's market capitalization is only 261.26 million – around a quarter of its rival. While comparing the total values of these EV companies is too simplistic, the search for a quick surge may convince traders to jump on NASDAQ: IDEX.
At $1.56, shares are down more than 50% from the 52-week high of $3.98.
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