Electric truck chassis maker Xos Trucks is going public with blank check backing from a special purpose acquisition company (SPAC). Xos will merge with NextGen Acquisition Corp. at an implied market capitalization of $2 billion.
Xos will get $575 million raised by NextGen (NASDAQ:NGAC) . NextGen raised $335 million through an initial public offering in which investors gave NextGen a “blank check” to pursue a merger. Another additional $220 million came via a private investment in public equity (PIPE).
The proceeds for Xos assume no NextGen investors redeem shares before the business combination is completed in the second quarter. If he merger goes through, NGAC shares would trade under the ticker symbol XOS.
Xos makes a customizable chassis with the wiring, battery mounting and axle-mounting systems for medium- and heavy-duty electric trucks. Its customers include United Parcel Service (NYSE: UPS), armored truck company Loomis and Japan’s Hino Motors Ltd., a subsidiary of Toyota Motor Corp. (NYSE: TM)
Xos claims a backlog of 6,000 orders, including an order for 100 trucks from Thompson Truck Centers, a subsidiary of Thompson Machinery. 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, an Xos spokeswoman said.
Xos also offers fleet-as-a-service (FaaS), which for a fixed monthly fee bundles financing and maintenance. FaaS is projected to increase Xos’ lifetime revenue per vehicle. In a similar scheme, Nikola Corp. (NASDAQ: NKLA) plans to offer fuel cell Class 8 trucks, maintenance and hydrogen fuel for seven years for a set price.
“Today’s announcement represents a major milestone that allows Xos to expand its vehicle and battery manufacturing capacity, advance our next-generation battery and vehicle control systems and put thousands more Xos vehicles on the road,” Giodano Sordoni, Xos co-founder and chief operating officer, said in a press release.
Xos began in 2016 as Thor Trucks. Its first prototype, a Class 8 day cab built on its electrified chassis, brought comparisons to the Tesla (NASDAQ: TSLA) semi introduced a few weeks earlier in 2017. The Semi has been delayed numerous times beyond its original 2019 production target.
Xos gave up the Thor name in a trademark dispute with recreational vehicle maker Thor Motor Coach in 2019. Around the same time, it pivoted to focus on Class 5-7 medium-duty trucks. Class 8 trucks are on the back burner. But they remain in Xos’ plans.