Feb 22, 2021 - Economy & Business

Xos to go public at $2 billion valuation as electric SPAC wave rolls on

Animation of a briefcase-shaped traffic light cycling through red to green
Illustration: Sarah Grillo/Axios

Xos Inc., an electric truck company that counts UPS among its customers, said this morning that it's going public at a $2 billion valuation via a reverse merger with NextGen Acquisition Corp.

Why it matters: The California-based Xos' deal is the latest in a wave of electric vehicle companies going public via mergers with special purpose acquisition companies, signaling heavy investor interest in the sector.

The big picture: The announcement states that demand for "last mile" commercial EVs is slated to soar in coming decades as the trucks "replace traditional fossil fuel vehicles, driven by new emissions standards, continued growth of e-commerce and the relocation of fulfillment centers to areas closer to consumers."

Yes, but: It's an increasingly competitive space, with lots of money pouring into companies with few or even no vehicles on the roads, and the electric models remain a niche — if growing — slice of commercial and passenger markets.

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