Ideanomics acquires EV tractor manufacturer Solectrac

Industry

Minority stakeholder Ideanomics has announced that it has now acquired 100% of Solectrac, a zero-emission tractor manufacturer based in the US. With the full acquisition, Ideanomics plans to continue to support Solectrac in scaling toward becoming a global supplier of clean agricultural equipment.

Solectrac was founded in Northern California with the goal of offering farmers independence from the pollution, infrastructure, and price volatility associated with fossil fuels. The company is a portfolio client of Ideanomics, which was previously a minority owner after increasing its stake in the company once already, last November.

Ideanomics ($IDEX) is a global company focused on technological disruption by means of capital investment. The company had a diverse portfolio of invested electrification companies, including some Electrek has previously covered, like Energica. As previously mentioned, Ideanomics was previously a minority stakeholder in Solectrac before today’s announcement.

Ideanomics Solectrac
The Solectrac Compact Electric Tractor (CET)

Solectrac by Ideanomics

In a press release today, Ideanomics announced it has acquired the remaining 78.6% of the fully diluted equity of Solectrac and now owns 100% of the EV tractor manufacturer. Ideanomics believes that Solectrac has a head start in the electric agricultural vehicle market in North America and with limited competition.

Furthermore, the new owners believe Solectrac’s current electric tractor lineup is scalable with a proven market demand. Ideanomics CEO Alf Poor explains:

The acquisition of Solectrac is perfectly aligned with our EV and Mobility initiatives. EV tractors have proven to be superior to their diesel counterparts not only when it comes to torque and overall performance, but also when you consider operating costs, reliability, and the positive impact they have on the environment. They are also an underserved part of the market when it comes to EV initiatives. For those reasons, we are excited to bring Steve Heckeroth and the Solectrac team into the Ideanomics family. With farmers and business operators eager to transition from diesel to sustainable alternatives, we intend to make Solectrac the reliable, go-to brand not just here in North America, but across the globe.

Looking ahead

Ideanomics has stated that the proceeds from the deal will allow Solectrac to stack inventory, leverage its negotiating power, strengthen its supply chain, and increase its production capacity in the US.

Additionally, Ideanomics hopes to help Solectrac hire more staff and implement sales and marketing initiatives. Solectrac Founder and CEO Steve Heckeroth shared his excitement:

All of us at Solectrac are pleased to be joining the Ideanomics ecosystem, giving us access to an array of resources to help scale our marketing, operations, and manufacturing capabilities. Our mission is to lead the transition from fossil fuel-based farming to zero-emission regenerative agriculture with best-in-class technologies, and Ideanomics will help us accelerate our progress toward that game-changing goal.

Solectrac currently offers three different e-tractors and utility vehicles for agricultural purposes ranging from 25 to 70 horsepower. With a new owner flush with capital and faith in the electric agricultural vehicle market, Solectrac appears to be in good hands looking forward.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Products You May Like

Articles You May Like

Tesla launches its Full Self-Driving subscription package for $199 per month
Turntide Technologies acquires AVID Technology, raises $225 million in financing
Electric Jeeps, Volvo C40 Recharge up close, 50 mpg for under $30,000: The Week in Reverse
Tesla is closing its first-ever Supercharger to the public
VW ID.4 Max Priced From £48,510 In UK

Leave a Reply

Your email address will not be published. Required fields are marked *