One of the stocks to have come into focus last week was that of Ideanomics (NASDAQ:IDEX). This past Friday, the Ideanomics stock rallied strongly as investors piled on to the stock in a big way. Considering the gains made by the stock on Friday, it could be a good idea for investors to take a closer look at the company before the trading session begins today.
While the rally in the Ideanomics stock may have been attention-grabbing, it should be noted that there was no material news about the company’s business that could have caused it. However, there are some other catalysts at play that may have resulted in the gains.
Ideanomics, which is involved in the electric vehicles space, is all set to launch new vehicles in December. This particular event is almost certainly going to be watched closely by investors. More importantly, the company is expected to unveil as many as six vehicles, which is a remarkably high number of vehicles for a manufacturer.
On the other hand, China’s state-owned refueling company Petro China is expected to launch its electric vehicle charging stations in the country.
If that happens, then it would be a major boost to Chinese electric vehicle manufacturers like Ideanomics. Investors expect Petro China to make an announcement to that effect soon.
On the other hand, the results of the Presidential elections in the United States could also be a significant boost for Ideanomics. The idea of a Joe Biden presidency could actually work out in the company’s favor.
It is believed that the tensions rising out the United States-China trade war are going to be significantly eased by the Joe Biden administration. It goes without saying that Chinese companies like Ideanomics are going to be in a better position in such a scenario.
On other hand, investors should also keep in mind that Biden has been an advocate of cleaner modes of transportation for a considerably long period of time.
His push for cleaner energy consumption in the United States might have a knock-on effect in China as well. If that happens, then Chinese electric vehicle manufacturers like Ideanomics are expected to benefit handsomely.
These are some of the factors that could have been the main triggers behind the remarkable rally in the Ideanomics stock last week. However, it remains to be seen if the stock can continue to record gains this week.
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