Xos Partners with Leap to Enhance Revenue for Electrified Fleets and Boost Stock Value

XOS Partners with Leap to Enhance Revenue for Electrified Fleets. XOS reported Q1 2025 revenue of $5.9 million, down from $11.5 million in Q4 2024 and $13.2 million in Q1 2024. The company launched its Xos Hub charging technology with Leap's automated energy market platform to generate additional value for fleet owners and provide essential grid support.

XOS Inc. (NASDAQ: XOS) has announced a strategic partnership with Leap to create revenue streams for commercial electric truck fleets by leveraging XOS's Xos Hub mobile battery-integrated chargers and Leap's virtual power plant platform. This collaboration aims to support the power grid during energy emergencies, providing essential grid support while earning money through California's Demand Side Grid Support program.

The partnership, announced on Tuesday, connects XOS's Xos Hub technology to Leap's virtual power plant platform. During grid emergencies, participating fleets can automatically shift from grid power to their Xos Hub batteries, helping prevent blackouts and earning revenue through the program. XOS manufactures electric stepvans used by major logistics companies including FedEx and UPS, and its Xos Hub technology offers flexible charging solutions without requiring permanent infrastructure installation.

"Leveraging our complementary technologies, Leap and XOS are tapping new value streams for commercial truck fleets," said Jason Michaels, CEO of Leap. Dakota Semler, CEO of XOS, added that the virtual power plant offering "gives fleet customers advanced energy capabilities without compromising control or convenience."

Despite this positive development, XOS reported a challenging first quarter of 2025. The company's revenue dropped to $5.9 million from $11.5 million in the previous quarter and $13.2 million in the same period last year. The decline in revenue was accompanied by a reduction in unit sales, with only 29 units sold compared to 51 in Q4 2024 and 62 in Q1 2024. Despite these setbacks, XOS has set a full-year 2025 revenue guidance between $50.2 million and $65.8 million.

XOS is also focusing on strategic innovations, including the launch of the MD XT medium duty chassis cab, which is expected to ramp up production by Q3 2026. The company is navigating supply chain disruptions and tariff challenges, prompting it to explore supplier diversification and cost reduction strategies.

References:
[1] https://www.investing.com/news/company-news/leap-and-xos-partner-to-create-revenue-from-electric-fleet-charging-93CH-4089201