Electrification solutions company XL Fleet (NYSE:XL) announced a new deal with Apex Clean Energy today that only seemed to displease investors. Despite completing an installation of 12 charging stations for Apex, XL stock is down more than 15% today.
So, what has XL looking XS lately?
This latest deal supports an earlier partnership between the two companies. In April, Apex acquired 10 Ford (NYSE:F) F-series pickups with XL Fleet’s plug-in hybrid electric drive systems. XL Fleet is best known for its plug-and-play electrification options available on a number of popular trucks. The plug-ins deliver enhanced fuel consumption, reduce CO2 emissions and can even provide analytics on electrification metrics.
The installation was carried out by World Energy Efficiency Services, a team that joined XL as a subsidiary, in May. Each deployment consisted of 12 dual-port, level-2 chargers, across six wind farm facilities in Texas, Oklahoma and Illinois.
What This Means for XL Stock
Both XL Fleet and Apex have expressed satisfaction with their partnership, but, unfortunately, this has meant little for XL’s stock price. Today’s drop comes after a disappointing year overall for the electric vehicle (EV) based business. After hitting $29 per share last December, XL has seen a steady and substantial decline over the year. Regardless of the promising news, it’s currently trending around $3.15 after losing nearly $0.56 just this morning.
XL Fleet Chief Executive Eric Tech had some kind words for the deal:
“XL Fleet is committed to helping Apex and other sustainability-minded companies to accelerate their path to electrification, even in rural areas where access to EVs has been extremely limited. This is a great example of how XL Fleet is leveraging our experience and our solution suite to help customers remove barriers to electrification, gain access to charging infrastructure and move forward on achieving their comprehensive sustainability goals.”
Despite the glowing reviews, XL Fleet remains bearish in many investors’ minds, apparent from its stubborn stock price.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.