Shares of XL Fleet (XL) moved higher Thursday after the electric-vehicle (EV) company announced a new strategic partnership. As of 1 p.m. EST, shares had gained 7.7%.
XL Fleet began trading publicly in December 2020 after merging with a special purpose acquisition company (SPAC). The company provides hybrid and plug-in hybrid electric drive systems for commercial fleet vehicles built by automakers Ford, General Motors, and Isuzu, as well as for fleet owners like PepsiCo and FedEx.
Today, the company announced a partnership with Curbtender, a designer and manufacturer of refuse collection vehicles. The companies will jointly develop fully electric, plug-in hybrid, and hybrid refuse trucks beginning this year.
In a joint statement, the companies said they will develop and manufacture "a battery electric refuse vehicle equipped with an XL Electric propulsion system and a Curbtender Quantum rear loader refuse truck body within the next year." There will also be plug-in hybrid electric versions, as well as a range of refuse vehicle solutions in the Class 3 to Class 8 truck categories.
This is significant in that the latest investor presentation from XL said that Class 7 and Class 8 trucks -- including refuse trucks -- would be "future development" products. The fact that it already has concrete plans and a partnership for such vehicles indicates the company is moving quickly on its growth plans.