Ideanomics says MEG subsidiary wins electric vehicle order from Tianjin Zhongcheng worth US$4.4M

Ideanomics Inc (NASDAQ:IDEX) unveiled Friday more positive news from its electric vehicle (EV) hub in Qingdao, Shandong province, China where it has won an order from Tianjin Zhongcheng Jiaye Automobile Trading worth RMB 31 million or US$4.4 million. The order is for 42 electric vehicles or around US$100,000 per vehicle, the group said in a statement. READ: Ideanomics seeing good vehicle sales at MEG center in Qingdao; eyeing full-year sales target The group's electric vehicle division, Mobile Energy Global (MEG) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions. Earlier this month, the group said it had sold 2,139 vehicles worth US$33 million since the expo centre in Qingdao opened on May 1 this year. On June 16, the group said MEG had secured an order from Didi City CP, a licensed city operator of China’s Didi Chuxing, for 300 electric vehicles valued at U$4.2 million. And on June 17, the firm said MEG had secured a further order from Jiangsu Journey Network Technology Co Ltd (Jiudao Group) for 400 electric vehicles valued at US$5.1 million. Ideanomics said the latest order would be "fulfilled with Toyota Land Cruiser models, and subject to final negotiations with manufacturers, financing, government licensing, etc., delivery of the vehicles to Tianjin Zhongcheng is expected to commence later this month". The US GAAP accounting treatment for the anticipated revenue from the order will not be finalized until the transactions complete, it added, so revenue may be reported on a gross or net basis and some portion may be deferred to future accounting periods. Ideanomics, headquartered in New York with offices in Beijing and Qingdao, is focused on monetizing the adoption of commercial electric vehicles and developing next-generation financial services and fintech products. Contact the author at giles@proactiveinvestors.com