Electric mobility investor Ideanomics has filed for Chapter 11 bankruptcy protection in Delaware, USA, as it seeks a buyer for its wireless charging business and other technology investments. The company’s financial situation has grown increasingly dire, with substantial losses in recent years.
Between 2021 and 2023, Ideanomics invested $320 million in electric vehicle technology, acquiring companies such as Via Motors, Solectrac (a manufacturer of electric tractors), Energica (an Italian electric motorbike maker), and Wave (a provider of inductive charging systems for electric commercial vehicles). At its peak in 2021, Ideanomics’ stock was trading above $600, fueled by growing investor interest in electric mobility. However, Reuters reports that most of these investments have been unprofitable. At the time of its Chapter 11 filing, the company had accumulated $30 million in debt, with only $189,000 in cash on hand, and had incurred losses exceeding $800 million over the past five years.
In light of these financial challenges, Ideanomics ceased investing in Energica when the electric motorbike manufacturer declared bankruptcy in October. According to court documents, the company has closed most of its acquired subsidiaries, except for Wave, and laid off all but 17 employees. Wave remains operational due to its ongoing contract with the Antelope Valley Transit Authority in California and a potential buyer. Ideanomics has secured an insolvency loan of $11 million from Tillou Management and Consulting, and is considering selling Wave to Tillou, unless a higher bid from another buyer materializes.
Ideanomics’ filing for Chapter 11, which provides creditor protection while companies restructure, is a significant move in the electric mobility sector. However, with most of its business operations dissolved and the future of Wave uncertain, the company’s reorganization efforts raise questions about its viability.
