Yesterday, we issued research on Ideanomics that showed:
Today’s response shows IDEX walking back some of its previous claims about its “MEG” center, where it purportedly is selling EVs in Qingdao.
Prior to today, the company has repeatedly referred to its facility in numerous press releases as a “1 million square feet EV hub”.
For example, the company’s May 26 press release clearly says: “The MEG Center is a one million square foot EV expo center in Qingdao, Shandong Province.”
But in the company’s press release today, IDEX backtracks and says it is launching three phases of its MEG center that will eventually total one million square feet. The first phase, it claims, occupies only 215,000 square feet.
But the company’s June 9 press release, issued as IDEX stock was pumping higher, also says nothing about opening in three phases. Instead, it boasts “As a reminder, the MEG Center in Qingdao began operations on May 1.”
The company’s May 26 press release follows up by saying: “The MEG Center in Qingdao now hosts a full suite of car dealer services for new energy and used cars with a capacity of 18,000 vehicles onsite. It offers a one-stop buying experience that includes financial services and onsite vehicle registration services.”
Further, in the company’s press release today it posted an aerial view of the supposed MEG Center.
That video was apparently pulled from this YouTube account which posted the video two weeks ago: https://www.youtube.com/watch?v=cx-uqvn5UOg
The video is drone footage of the outside of the entire facility. We think the reason the company isn’t posting video from INSIDE the facility is because such video shows they have absolutely no presence on site whatsoever.
So in response, we are posting our video of the inside of the “MEG” center, which is actually called the Qingdao Fidelity International Trade City (or 富达国际商贸城 in Chinese), which shows only few cars for sale, and no sign of the company on site.
In short, we think the company has fabricated its supposed sales center, and altered images in its press releases to make it seem that it operates the facility.
We continue to believe, as we stated yesterday, that the company is engaged in flagrant securities fraud and that it’s stock will wind up in the pennies or halted by regulators.
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