NEW YORK - March 10, 2020 Ideanomics Inc. has announced a detailed update to its Mobile Energy Global ("MEG") activities, including the impact of the Coronavirus on its Q1 activities.
In general, Chinese companies returned to work at the start of March with most major commercial activities slowly getting back to normal. MEG's partners have been impacted to varying degrees and recent conversations have shown there is a resolute effort being made to recover quickly from the effects of the outbreak. Currently, there are no details available for any government stimulus programs to help the Chinese economy recover from the shutdown, so we are unable to determine what participation opportunities, if any, may be available to Ideanomics and MEG.
Financing / Funding for Fleet Purchasing
In September 2018, Ideanomics announced its agreement with First Auto Loan, regarding lease financing and ABS products with a target of raising $6 Billion to fund the lease financing of ride-share vehicles and other types of app-requested taxis. This agreement is currently in progress and will benefit from the capital sourcing referenced below.
In November and December of 2019, Ideanomics and MEG announced the creation of multiple funds in association with Dasheng Licheng Lease Financing, with Ideanomics bringing in several high-profile insurance companies to provide large-scale funds to support EV lease financing programs. The final province-level registrations were underway when the outbreak occurred and are now back underway. The impact on bringing these funds to market will now extend into Q2 but should otherwise remain unaffected.
In November of 2019, Ideanomics and MEG announced an agreement with China's Yunnan province which included lease financing for the heavy truck segment, with backing by AAA-rated province-specific entities in conjunction with MEG's lease financing programs. The deal also provided for investment into charging station infrastructure, as well as investment into Treeletrik via Yunnan's role as the ASEAN region's belt and road sponsor. The shutdown impacted the timing on this, particularly as it pertained to final registration and approvals at local government, but is expected to be reinstated in the near term.
EV and EV Battery Manufacturing Alliance
Over the course of the past 18 months or so, Ideanomics, and subsequently MEG, has partnered with leading EV and EV Battery manufacturers, including JAC, Geely, Beijing Foton, CATL, and Yinlong, among others. These partnerships are an important part of the overall offering and assist MEG in offering competitive procurement and order fulfillment. Having best-in-class partners ensures we can meet the needs of fleet operators in terms of vehicle specifications, quality, reliability, and cost and continue to attract large-scale order interest.
As part of the commencement of activities in Qingdao, we will be showcasing many of these partners at our EV sales hub and anticipate additional manufacturing partners participating based on their value to the overall offering.
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