Ideanomics, (NASDAQ: IDEX) (“Ideanomics” or the “Company”), has today announced that its MEG Group subsidiary Qingdao Mobile New Energy Vehicle Sales Co. Ltd. has received an initial investment of ¥50 Million RMB (approx. $7.2M US) from Qingdao Xingyang City Investment Co., Ltd. as part of a series of investments valuing the subsidiary at ¥2 Billion RMB (approx. $288M US).
The follow-on investments will come as the newly formed MEG-owned sales group realizes sales targets of ¥10 Billion RMB per additional investment tranche of 50 Million RMB, with the full ¥200 Million RMB investment for a 10% stake in Qingdao Mobile New Energy Vehicle Sales Co. Ltd. achieved when gross sales reach ¥30 Billion RMB (approximately $4B US). Ideanomics had previously announced its plans to headquarter its MEG subsidiary in Qingdao, creating a commercial EV hub to showcase the depth of its manufacturing partner alliance to both governmental and enterprise fleet operators. fintech news
“The investment comes at an important time, with our MEG division ramping up operations. The investment from Qingdao’s investment fund is a recognition of our impact on the commercial EV ecosystem in China,” said Alf Poor, CEO of Ideanomics. “We have already taken in the initial investment, and the sales targets for the full investment will require MEG to sell around one hundred thousand units in total EV sales across our 4 segments of Logistical Vehicles, Taxis, City and Tour Buses, and Heavy Trucks. As the logistical vehicle market in China alone is some 14 million vehicles, it provides us with the size and scale to achieve those sales’ targets with a relatively minor share of the total commercial EV market. We’re thrilled to be basing our sales group in Qingdao and having the city participate as a stakeholder in our sales organization”.
