What’s Happening: Xos, a renowned electric truck manufacturer and fleet services provider, has introduced the 2023 Battery-Electric Stepvan. This next-generation vehicle features several engineering changes that will decrease direct material costs and increase gross margins while providing improved technology capabilities and savings for customers.
Why It Matters: The launch of the 2023 Xos Stepvan is part of the company’s program to achieve positive gross margin at the unit level in mid-2023. Xos has made significant changes to the design, sourcing, and production processes, resulting in a significant reduction in unit production costs while enhancing the vehicle’s performance and quality.
Key Points:
- The 2023 Xos Stepvan is built on the medium- and heavy-duty X-Platform™ chassis, with an enhanced telematics module and over-the-air software capabilities.
- Updates received via over-the-air offer additional features and improvements that will enhance the vehicle’s performance, while the telematics module enables advanced remote diagnostics for subscription customers of Xosphere®, the Company’s proprietary fleet management platform.
- The 2023 Xos Stepvan operates with a centralized liquid thermal management system and includes several structural changes to the chassis system that optimize the performance of the battery systems and allow for more compact packaging of harnesses, hoses, and high-voltage electronics.
- The launch of the 2023 Xos Stepvan is a key component of a company-wide program to achieve positive gross margin at the unit level in mid-2023.
Bottom Line: Xos has launched the 2023 Battery-Electric Stepvan with enhanced engineering capabilities, significantly reducing direct material costs and strengthening the Company’s gross margins while offering enhanced technology capabilities and customer savings. Launching this vehicle is part of the company’s program to achieve positive gross margin at the unit level in mid-2023.
