Xos Incorporated (NASDAQ: XOS) observed an impressive 11.63% uptick in its stock value in the post-market trading session last Friday, hitting a price of $0.3350. This substantial boost in the extended trading enabled XOS shares to recover almost all the losses suffered in the standard trading hours, which saw an 11.76% drop, resulting in a price decline to $0.3001.
Notably, this resurgence in XOS stock transpired in the absence of any immediate market developments. This intriguing development may suggest that forthcoming updates could shed light on the company’s recent performance.
XOS, in a press release on October 18, 2023, revealed significant achievements for the three-month period ending September 30, 2023. During this time, they successfully delivered 105 units to customers, marking a historic high in quarterly deliveries and their first quarter maintaining a positive gross margin.
Among these deliveries were the innovative 2023 Xos SV Stepvans, designed to outperform traditional diesel trucks and position Xos as a leading commercial electric vehicle manufacturer with positive gross margins.
For the third quarter of 2023, Xos anticipates a GAAP gross margin ranging from 8% to 15%, thanks to robust unit gross margins for the 2023 Xos SV Stepvan, which can reach up to +10% to 20% per unit, depending on configuration. Proprietary technology and cost-effective battery systems have enabled Xos to offer top-tier performance at a competitive price point.
Their 140kWh Stepvan suits most last-mile delivery routes, while the 280kWh option doubles range for extended routes or heavier payloads. Recent long-term agreements with key suppliers and improved design, engineering, and testing have substantially reduced manufacturing costs.
As a result, Xos’s electric vehicles are now competitive with traditional diesel vehicles in terms of total cost of ownership, which is crucial for fleet customers. Combined with available subsidies, these cost advantages can result in an estimated 30-40% savings compared to internal combustion engine (ICE) delivery vehicles in relevant markets.
Overall, Xos’s recent achievements highlight their commitment to positive free cash flows, sustainable profitability, and their position as a significant player in the commercial electric vehicle sector, offering cost-effective and environmentally friendly solutions to their customers.
