Electric delivery trucks might soon outnumber traditional trucks, as Xos, specializing in low-cost fleet sustainability, is likely to increase production very shortly.
Xos Trucks, a commercial electric vehicle startup, announced that it raised $20 million from investors. The startup raised funds earlier from venture capitalists as well. However, the company initiated this funding due to the new landmark emission rule in California. The regulation mandates that half of the truck sold by 2035 have to be zero-emissions, and every truck by 2045.
The startup aims to allocate the funding to ramp up the production of their X-Platform 1, which is a skateboard chassis, a little like what Canoo intends to use. XoS Trucks already uses a skateboard platform for medium-duty bodies and wheelbases. Now, it will also use it for the development of medium-sized commercial trucks designed for last-mile delivery services in dense urban areas. With that move, the company plans ahead of the upcoming change of regulations.
“We’re excited to continue growing our operations to provide best-in-class last-mile electric vehicles for our customers. It’s our goal to provide reliable, affordable, and sustainable transportation as the volume of e-commerce demands are increasing, and have accelerated during the pandemic.” — Dakota Semler, co-founder and CEO of Xos Trucks
After the enactment of the new rule, shipping providers and freight haulers will have to update their fleet to meet the new regulations. Therefore, Xos Trucks’ business will likely expand at an exponential rate.
However, there are also numerous competitors in the market, such as Rivian who just received an order of 100,000 electric vehicles from Amazon. Meanwhile, other competitors, such as Daimler and Volvo, are also at the peak of their electric-truck business.
Still, one should expect Xos to come out stronger after the funding. Besides, the new rule undoubtedly works in favor of the company.
Giordano Sordoni, Xos co-founder and chief operating officer, said the company is gaining orders every month. “We are excited to meet the overwhelming demand for both our medium-duty and heavy-duty trucks. The new funding is critical to the company’s ability to scale production.”
Competition is undoubtedly growing fierce in the commercial electric truck market. It will sure be interesting to see who comes out on top in the months to come.
