Ideanomics' shares soared today after the company announced that one of its subsidiaries, WAVE, anticipates it'll have a reduction in electric vehicle charging costs, thanks to recent manufacturing and engineering investments.
The tech stock increased in value by 15%.
Medium- and heavy-duty vehicles are being charged by WAVE. It has a hands-free charging system that is embedded in the roads.
The image is from the same source.
The company said in the press release that it will be able to pass on reduced costs to some of its customers because of its focus on manufacturing and engineering improvements.
For years, WAVE systems have enabled our customers to match diesel vehicles' range and duty cycle. Michael Masquelier, WAVE's chief technology officer, said in the release that the cost reductions would provide fleet operators with new electrification solutions.
WAVE also announced a new charging-as-a-service offering that includes charging hardware and infrastructure, maintenance, and a three-year warranty for the charging technology. Customers will be able to sign up for a monthly fee.
Some investors were happy with Ideanomics' announcement today, but they should be careful with their optimism because the company's lackluster share performance over the year should make them cautious.
The stock of Ideanomics has plummeted over the past year, and today's huge share price spike from just one press release shows how volatile this stock is.
All of which means that long-term investors may want to be cautious.