Market

Total Cost of Ownership

Electric truck on highway

Note: Total cost of ownership estimates are for illustrative purposes only and are subject to variation based on a number of factors not fully discussed herein. Sources: U.S. Department of Energy; AAA Fuel price data; Xos analysis
1Estimated based on certain factors, including purchase price, energy and fuel costs and maintenance costs.

XOS’ proprietary technology saves
fleets money

Xos Stepvans deliver Total Cost of Ownership (TCO) savings before incentives, with estimated payback periods <5 years.

Total cost of ownership over 300k miles, based on purchase price; energy/fuel; and maintenance spend1:

Diesel Trucks: $232k
Freightliner EV: $270k
Xos: $186k

Positive Gross Margins

back of electric truck

Market leading path to profitability

Xos is among the first publicly traded commercial EV OEMs to deliver positive gross margin units.

Xos achieved GAAP gross margins of 12% in the first quarter of production of the 2023 stepvan.

This includes a quarter-over-quarter reduction in direct material, direct labor and overhead costs on a per unit basis, thanks to investments in R&D and strategic sourcing.

Regulatory Tailwinds

electric truck in snow

Enabling the mandated transition to
Electric vehicles

The Advance Clean Fleets (ACF) rules passed in 2023 by the California Air Resources Board (CARB) require medium-duty fleets, including stepvans, to transition to 100% zero-emission vehicles by 2035.

14 other states, California, and the District of Columbia signed a pledge for 30% zero-emission fleets by 2030 and 100% by 2050

California Regulations Support Clean Fleets

California put a deadline on the EV transition. and other states are expected to follow.

Just under a dozen states have enacted supportive legislation, including California, Texas, New York, New Jersey, Pennsylvania, Maryland, Massachusetts, Colorado, Utah, Oregon and Nevada.

1Based on the ZEV milestones option for milestone group 1 as laid out in the California Advanced Clean Fleets (ACF) regulation for high priority fleets Sources: California Air Resources Board (CARB); Xos analysis

Mandated share of zero-emission vehicles, California stepvan fleets
Federal IRA tax credit

Nationwide Regulatory Tailwinds

Stackable federal and state incentives can cover the majority of vehicle costs.

Sources: U.S. IRS; State websites; Xos analysis