If you are keen on the market trends, you have concluded that electric vehicles are currently popular and in high demand. And unlike companies often merge to develop or sell the products. In the recent report, the Xos and NextGen Acquisition Corporation are forming a partnership. The former is a leading commercial electric vehicle equipment manufacturer in the $100 billion medium, while the latter is a heavy-duty retail electric vehicle market.
In a recent announcement, Xos and Nasdaq: NGAC announced their plan to work together. The dual has entered into a definitive business combination agreement whose. The primary role is to make Xos a publicly listed company. Via the Twitter account, the CEO, Dakota Semier, stated his excitement in the new venture. He went ahead to give a short history about how Xos came to be and the mission of Xos. The central role of the company’s creation was to decarbonize the transport industry through the design, innovation, and development of commercial vehicles.
Dakota talked about their association with different fleet operators when it comes o bringing their products to the market. He also stated the challenges that the company has faced since its birth in 2016. For information on the partnership, Dakota expressed how Xos takes this step as a milestone to help the company expand both the vehicle and battery manufacturing capability.
NextGen, George Mattson, talked about the environment and climate changes and how electric vehicles will help create a zero-emission country. He spoke about how the company went through over a hundred potential merger opportunities and power evaluation before settling for electric cars.
The two companies have a Pro-forma market capital that runs up to $2 billion. Xos vehicles have been in the market since 2019, whose customer base includes Loomis, UPS, Wiggins, and Lonestar. These customers order over 6000 units which include both contraction and optional orders. Experts expect Xos to deliver the total cost of ownership through the powertrain systems and purpose-built battery. Also, there is the integrated control vehicle software and OEM powertrain architect that is in the X-platform.
Xos also has a stable multi-year manufacturing partnership with Metalsa, the number one Tier 1 supplier and strategic investor. The main reason for this partnership is to build chassis components and frame rails. All the top officials from the two prominent companies will unite and create a new board of directors. Reliable sources claim that the transaction is likely to take place in the second quarter of the year. The combined companies will be listed on The Nasdaq Stock market with the symbol ”XOS.” This partnership is grand, and many are hoping to see its result. And how the end product will be for the two companies and the customers.