• ITVI.USA
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    108.680
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  • OTLT.USA
    2.798
    -0.001
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  • OTRI.USA
    22.010
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  • OTVI.USA
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    100.010
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  • TSTOPVRPM.ATLPHL
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  • TSTOPVRPM.CHIATL
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  • TSTOPVRPM.LAXDAL
    3.550
    0.210
    6.3%
  • TSTOPVRPM.PHLCHI
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    0.220
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  • TSTOPVRPM.LAXSEA
    4.110
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  • WAIT.USA
    126.000
    0.000
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  • ITVI.USA
    15,948.420
    108.680
    0.7%
  • OTLT.USA
    2.798
    -0.001
    0%
  • OTRI.USA
    22.010
    -0.060
    -0.3%
  • OTVI.USA
    15,936.600
    100.010
    0.6%
  • TSTOPVRPM.ATLPHL
    2.950
    -0.570
    -16.2%
  • TSTOPVRPM.CHIATL
    3.610
    0.650
    22%
  • TSTOPVRPM.DALLAX
    1.370
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  • TSTOPVRPM.LAXDAL
    3.550
    0.210
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  • TSTOPVRPM.PHLCHI
    2.320
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  • TSTOPVRPM.LAXSEA
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Electric TrucksNewsTop StoriesTrucking

Xos Trucks shares drop 14.5% on 1st day of public trading

SPAC-backed startup gets same disdain as other newly public electrification entries

Shares of Xos Trucks finished 14.5% lower in their first day of public trading Friday as the electrification startup met the disdain that other emissions-free truck makers and infrastructure companies have endured.

The shares opened at $8.64 on the Nasdaq, rose to $9, and then fell as low as $7.27 before closing at $7.55. At that price, shareholders who purchased stock of NextGen Acquisition Corp. — the special purpose acquisition company sponsor of Xos — are in a loss position from the $10-per-share price they paid. 

Those who received warrants to purchase Xos (NASDAQ: XOS) shares at $11.50 as an inducement to invest in NextGen are similarly underwater.

It is a common refrain for electrification SPACs that have gone public. Electric bus maker and infrastructure provider Proterra Inc. closed at $9.07 Friday; hybrid electric powertrain maker Hyliion Holdings closed at $8.17, and Nikola Corp., the first of the electrification SPACs to go public in June 2020, closed at $9.44.

Business combination completed Wednesday

Xos completed its business combination Wednesday with NextGen, a shell company created to merge with a startup and bring it public. Xos received $575 million in cash from NextGen, consisting of $335 million raised from investors in a blank check initial public offering and $220 million from private investors. Xos has an enterprise value of $2 billion.

Formerly known as Thor Trucks, Xos develops purpose-built electric medium- and heavy-duty last-mile commercial vehicles using a custom-designed modular battery powertrain and chassis system for maximum flexibility in Class 5 to Class 8 commercial vehicles.

Customers of its X-platform include FedEx Ground operators, Loomis, Thompson Cat, Lonestar and UniFirst.

Back orders of 6,000 trucks

Xos claims a backlog of 6,000 orders, including an order for 100 trucks from Thompson Truck Centers, a subsidiary of Thompson Machinery, headquartered in Nashville, Tennessee. The two companies are targeting 1,000 medium- and heavy-duty trucks over the next three years. Most of the bodies are expected to be built by Morgan Olson.

“We founded Xos to provide a technology platform for our customers that aligns with their sustainability goals and climate change mitigation efforts and also delivers significant total cost of ownership saving,” Xos co-founder, Chairman and CEO Dakota Semler said in a press release. “This transaction will fund our delivery commitments and our strong growth well into the future.”

Semler and co-founder Giordano Sordoni get $20 million of the private investment in public equity (PIPE) funding, according to a Securities and Exchange Commission filing. The two and other Xos stockholders will own 64.9% of the merged company. Assuming no redemptions, public shareholders own 19.1%, SPAC sponsor NextGen, 4.8%; and PIPE investors 11.2%.

“As a well-capitalized public company … Xos is ideally positioned to address a $100 billion total addressable market for medium- and heavy-duty last-mile commercial electric vehicles,” said George Mattson, co-chairman of NextGen and lead independent director of Xos.

Electric chassis maker Xos Trucks agrees to $575M SPAC merger

Xos sells 120 electric vehicles to FedEx Ground ISPs

AEV Summit: Xos on why vocational vehicles make great EVs

Click for more FreightWaves articles by Alan Adler.

Alan Adler

Alan Adler is a Detroit-based award-winning journalist who worked for The Associated Press, the Detroit Free Press and most recently as Detroit Bureau Chief for Trucks.com. He also spent two decades in domestic and international media relations and executive communications with General Motors.

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