California recently passed regulations requiring that over 50% of all commercial trucks sold in the state must be zero-emissions by 2035 and other states have signed a memorandum to phase out all diesel-burning medium- to heavy-duty truck and bus sales by 2050. These new laws signal promise and opportunity for companies like Xos Trucks, the LA company building state-of-the-art OEM electric trucks that forge together battery packs, chassis, and software. Xos Trucks’ flagship X-Platform 1 is fully electric and compatible with a variety of medium-duty bodies, wheelbases, and range requirements up to 200 miles. The X-Platform 1 is often customized into Class 6 medium-duty bodies that fulfill short-range deliveries, which have been used by UPS. Xos Trucks is also developing the ET-One, a Class 8 heavy-duty truck that can carry 80,000 pounds and can travel 150 miles per charge. 65% percent of trucks on the road travel less than 150 miles per day and Xos is addressing this market with its solutions to make last-mile delivery sustainable and efficient.
LA TechWatch caught up with COO and Cofounder Giordano Sordoni to learn how more about Xos Trucks is disrupting an $8T industry from the ground up with saavy engineering and software.
Who were your investors and how much did you raise?
We raised $20M from a group of investors including Proeza Ventures and BUILD Capital Group. This is our first round of institutional capital as it had been privately funded by the founders up until now.
Tell us about the product or service that Xos Trucks offers.
We make trucks as an OEM with a deep internal focus in three key areas of vehicle development: our proprietary chassis platform (the X-Platform), a custom battery pack system, and the software and connectivity to bring it all together.
Our flagship product, the X-Platform, is a modular platform built from the ground up and designed in-house by Xos, to meet any fleet’s needs. Most often, it’s customized into class 6 medium-duty step vans for light, short-range deliveries. We can meet a broad swath of range requirements that fleets may have by additional packs onto the platform. Each pack adds between 20 and 30 miles of range in the current system, depending on the application. Some customer vehicles are being built with just 3 packs for intercity routes and lighter weights, while we also have a heavier vehicle with 10 batteries on board.
The platform is designed for commercial vehicles that our fleet partners, such as UPS and Loomis, then outfit further.
What inspired the start of Xos Trucks?
My cofounder, Dakota Semler, and I worked as fleet operators and witnessed the challenges first-hand that operators face. With commercial fleets, the constant idling and stop-and-go for deliveries, etc. hinder a fleet’s ability to meet sustainability and efficiency goals. Furthermore, about 65 percent of all trucks on the road travel daily routes of 150 miles or less. So, we’ve focused our products and solutions on last-mile delivery vehicles, which are huge emitters of greenhouse gasses. Each truck emits a whopping 61,000 lbs of C02 into the atmosphere per year.
How is Xos Trucks different?
First, we’ve focused on creating a fully customizable electric chassis system that can be outfitted further to meet any fleet’s needs. Second, we’ve focused specifically on last-mile delivery, which makes up a majority (65 percent) of all trucks on the road today.
What market you are targeting and how big is it? What is your business model?
We partner with logistics networks and large fleet operators, such as UPS and Loomis, which is an $8T industry. Medium-duty vehicles are in massive demand due to surges in last-mile delivery, and this has only been accelerated by the pandemic.
How has Xos Trucks been impacted by COVID-19?
Like most companies, when the pandemic hit, we became focused on the wellbeing of our employees and public safety. We maintained focus on our core product.
What factors about your business led your investors to write the check?
We’ve made several notable accomplishments in the four years since our founding, including assembling an experienced, technical, and mission-driven team and designing and engineering a proprietary, reliable, and affordable chassis solution and battery pack for commercial fleets. We have also formed partnerships with major players such as UPS and Loomis.
What are the milestones you plan to achieve in the next six months?
With our recent funding round, we are entering a production phase and we are excited to fulfill several customer orders and bring more electric trucks to the road.
What advice can you offer companies in Los Angeles that do not have a fresh injection of capital in the bank?
Everyone will tell you to focus on adding value for your customers, and the rest will fall into place. This is only true if you already have a bunch of money, or you’re already really well connected in the venture world. Adding value to core customers is extremely important, but fundraising is one of your many full-time jobs as a founder. Take it seriously, as cash is the lifeblood of your enterprise.
As far as customers go, investors will care more about having a few key customers that they can hop on the phone with and can help tell your story. Investors aren’t expecting high revenue numbers in the early days anyway. Get a few key customers to love you, and your product, and the attention you’re giving them rather than trying to get as many customers as possible.
As far as customers go, investors will care more about having a few key customers that they can hop on the phone with and can help tell your story. Investors aren’t expecting high revenue numbers in the early days anyway. Get a few key customers to love you, and your product, and the attention you’re giving them rather than trying to get as many customers as possible.
Also, think about which strategic partners and investors could add value, and start those conversations six months before you think you need to. Strategic investors generally move less quickly than financial investors can.
Where do you see the company going now over the near term?
Just two months ago, California adopted a landmark rule requiring more than half of all commercial trucks sold in the state to be zero-emissions by 2035, and all trucks by 2045. Additionally, New York signed a Memorandum of Understanding (MOU) with 14 states (and Washington D.C.) in a commitment to phase out diesel-burning medium- to heavy-duty truck and bus sales by one hundred percent by 2050, with a target for 30 percent of new truck and bus sales to be zero-emission by 2030.
This regulatory environment is accelerating the adoption of commercial electric solutions and we look forward to continuing to provide best-in-class electric vehicles to meet this need.
What is your favorite restaurant in LA?
MHZH in Silverlake, Carousel in East Hollywood, Jitlada in Thai Town, and just about any hole in the wall ethnic restaurant in the San Fernando Valley!
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