Another manufacturer of electric delivery trucks is planning to go public, as Xos and special purpose acquisition company NextGen Acquisition (NASDAQ:NGAC) announced a merger deal Monday morning. Xos focuses on medium- and heavy-duty last-mile trucks, a niche suitable for electric vehicles (EVs) that can be charged between shorter trips.
Xos trucks have a battery range of up to 200 miles, which covers more than 90% of shifts for regional commercial delivery vehicles, according to the company. The deal will result in a combined entity with a market capitalization of about $2 billion, and should bring $575 million in gross proceeds to the EV maker.
Xos says it has an order backlog of more than 6,000 units, and has vehicles in operation for customers including UPS and Loomis armored trucks. It competes with other EV makers including Workhorse Group (NASDAQ:WKHS).
Xos believes there is a $100 billion total addressable market for the medium- and heavy-duty last-mile delivery segment represented by Class 5 to Class 8 trucks.
The company expects the deal to fully fund the business through the time when it becomes cash flow positive. Xos only plans to deliver 117 trucks in 2021, but expects that to grow to over 2,000 in 2022 and more than 20,000 in 2024. The deal is expected to close in the second quarter of 2021.