It is time for investors to welcome another electric vehicle company to Wall Street. This time, it is XL Fleet (NYSE:XL), which just completed its reverse merger with Pivotal Investment (NYSE:PIC). Now that XL fleet is trading on the New York Stock Exchange, what do you need to know?
To start, investors should get a reminder of the red-hot business. Even though XL stock may be down in intraday trading, the company has garnered quite a bit of interest. This is because XL Fleet specializes in outfitting existing trucks from legacy automakers like Ford (NYSE:F), bringing them into the all-electric age.
With that in mind, here are 11 things to know about XL stock and the XL Fleet SPAC merger:
- Up until today, XL Fleet has been trading via a blank-check company.
- Specifically, it has been trading as PIC stock through Pivotal Investment Corporation.
- This is because Pivotal announced the XL Fleet SPAC merger in September 2020.
- At the time, the two companies said the deal was a great way to take advantage of growth in the electric vehicle market.
- Investors should note that XL Fleet occupies a different niche than many of its peers.
- Importantly, the company outfits existing vehicles from Ford and other automakers.
- Essentially, XL Fleet says it takes popular trucks and made-for-fleet vehicles, leaving the existing powertrain as is.
- XL Fleet says this is an easy way to promote sustainability and attract new customers to the world of all things electric.
- Investors should also note that XL Fleet already works with customers like PepsiCo (NASDAQ:PEP), Verizon (NYSE:VZ) and FedEx (NYSE:FDX).
- Additionally, at the time of the XL Fleet SPAC merger announcement, XL Fleet had a 12-month sales pipeline worth $220 million.
- With that in mind, PIC shareholders approved the XL Fleet SPAC merger yesterday.
What to Know About XL Stock
So what else do you need to know about the XL Fleet SPAC merger and XL stock? And why should investors care about another new entrant to the EV market?
Broadly, the answer lies in the fact that XL Fleet represents the combination of special purpose acquisition companies and electric vehicles. These are two trends that investors have rallied behind this year — and many experts think 2021 will only accelerate them. Importantly, XL stock also represents a unique niche in the EV market. As investors sort through the many options and work to identify the longer-term winners , XL stock may stand out.
Why? This is because of the way XL Fleet approaches the space. Investors should appreciate that it already is in business, as opposed to some companies still in concept and development phases. Additionally, it says its approach to retrofitting vehicles is a good way to attract customers. We know right now that more and more consumers are embracing the all-electric world. If companies like XL Fleet make it easier — and even provide analytics on the benefits — we could see a rush of adoption.
There is still so much for investors to learn in this space, but XL Fleet merits some attention. Keep this name on your radar as it starts trading today.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.