Ideanomics Inc. (NASDAQ: IDEX) moved down 7.19% in early trading session Friday as it disclosed that its subsidiary Solectrac has won major new business-to-business contracts to deliver electric tractors to clients with huge fleets. Solectrac has supplied the University of California Agriculture and Natural Resources and a prominent private sector plant nursery with a total of 17 powerful, zero-emission, and silent e25 tractors.
The Ideanomics Mobility president, Robin Mackie stated that because of their ongoing investment in growing the Solectrac brand, they are now ideally positioned to handle substantial orders for electric tractors from large fleet owners. This is a significant new revenue source for them, adding to the significant value currently provided by the rapidly expanding Solectrac dealer network.
Solectrac is exploring many high-value chances to offer its tractors to prominent agricultural enterprises, capitalizing on momentum. These high-volume sales will be made either directly to clients or in collaboration with Solectrac resellers. For direct sales, Solectrac focuses on speciality agriculture, parks, towns, and universities.
According to the Association of Equipment Manufacturers (AEM), an industry association that tracks retail tractor sales, tractor sales with less than 40 PTO horsepower have surpassed 127,000 units so far this year. The e25g is available from Solectrac in the ≤ 40 PTO hp category. Solectrac electric tractors perform the same functions as diesel tractors, but without the pollution caused by the use of expensive diesel fuel.
The combination of government subsidies, unpredictable diesel fuel prices, and business commitments to climate action will drive the spread of electric off-road gear. Ideanomics forecasts a considerable increase in the market share of electric tractors in a category expected to approach $100 billion by the end of the decade by Zion Research Investment and other organizations.