XL Fleet (XL) Stock: Why The Price Surged Today

By Amit Chowdhry ● Nov 23, 2021
  • The stock price of XL Fleet Corp (NYSE: XL) increased by over 16% during intraday trading today. This is why it happened.

The stock price of XL Fleet Corp (NYSE: XL) – a leader in vehicle electrification solutions for commercial and municipal fleets – increased by over 16% during intraday trading today. Investors are responding positively to XL Fleet announcing it was awarded a contract by the Defense Innovation Unit (DIU) and The U.S. Army’s Project Manager Transportation Systems (PM TS) to prototype a fuel-saving technology for military vehicles.

Upon earning the opportunity through a highly competitive bidding process, XL Fleet is one of two companies awarded a contract to develop a pilot technology project over the course of the next year. This technology has the potential to be applied to tens of thousands of existing vehicles across a variety of military applications. The pilot program started on October 1, 2021 and will run for 13 months.

XL Fleet’s contract is a part of the DoD’s ongoing efforts to address some of the key fuel-saving efforts for its fleet of more than a quarter million military tactical vehicles. And as these vehicles spend more than half of their operational time idling, they currently require significant amounts of fuel to run onboard electric power systems and to maintain cabin climate control.

This reduces vehicles’ range, creates significant costs, and increases thermal and acoustic signatures of the vehicles – putting them at greater risk of detection in the field. And by enhancing fuel efficiency and limiting the amount of fuel consumed by its vehicles, the U.S. military can significantly reduce the logistical and transportation requirements of its fuel supply chain – a key source of logistical complexity and safety risk to personnel.

As part of the DoD pilot program, XL Fleet is now developing a retrofit idle reduction technology for use in the Family of Medium Tactical Vehicles (FMTV), the U.S. Army’s standard two-and-a-half to 10-ton trucks. And the hybrid conversion kits would be delivered to the DoD for installation by Soldiers on vehicles in the military fleet. The Program Executive Office for Combat Support & Combat Service Support (PEO CS&CSS) – which includes PM TS, has expressed that this program may be a step toward further hybridization and electrification efforts as the U.S. military moves toward sustainable energy solutions to extend the operational range of its tactical vehicle fleet, among other benefits.

KEY QUOTE:

“We are honored by the opportunity to compete for this highly selective U.S. Government contract to develop fuel-saving solutions for a wide range of applications for tactical military vehicles. XL Fleet’s proven technology, flexible platform and deep experience in applying sustainable technologies to fleet vehicles make us an ideal fit for the U.S. military’s specialized needs for this project. We can help extend the operational range of their tactical vehicles, while supporting our troops’ safety and providing significant fuel and operating cost savings and reducing greenhouse gas emissions.”

— Tod Hynes, Founder and President of XL Fleet

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.