Xos (XOS) Stock Forecast & Price Target

Xos Inc has demonstrated significant growth in vehicle deliveries, achieving a record high of 135 units in the recent quarter, a substantial increase from 29 units in the previous period, primarily driven by demand from UPS and FedEx. The company is focusing on enhancing its gross margins despite facing tariff pressures and has outlined strategic measures to navigate these challenges while continuing to generate demand across its products. With expectations of improved liquidity as vehicle deliveries ramp up and a conservative yet optimistic outlook for FY25 revenue guidance, Xos is well-positioned for sustained growth in the fleet electrification market.

Xos Inc reported a decline in non-GAAP gross margins to 15.0% from 23.2% in the previous period, mainly due to tariff impacts affecting its vehicle and powertrain businesses, alongside a lower delivery count of 29 vehicles compared to 297 in the prior period. The company's total revenue for FY1Q25 was $5.9 million, falling short of the anticipated $10.2 million, exacerbated by a seasonal slowdown and reliance on long-term structured pricing for larger orders that contributed to lower margins. Xos also experienced a net loss of $10.2 million for FY1Q25 and reported challenges in managing cash flow and gross margins, which are expected to be further pressured by ongoing tariffs despite efforts to mitigate exposure.