Xos, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting both revenue fluctuations and strategic developments. For the three months ended September 30, 2024, Xos generated revenues of $15.8 million, a decrease of 5% from $16.7 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenues surged to $44.5 million, marking a significant increase of 70% compared to $26.1 million in the prior year. This growth was primarily driven by increased sales of vehicles and powertrains, with total product revenue for the nine months reaching $42.9 million, up from $25.2 million in 2023.

The company reported a gross profit of $2.9 million for the third quarter, an increase of 44% from $2.0 million in the same quarter of 2023. For the nine-month period, gross profit improved dramatically to $7.7 million, compared to a loss of $2.6 million in the previous year. Despite these improvements, Xos continued to face operational losses, with a net loss of $10.5 million for the third quarter, down from $14.1 million in 2023, and a net loss of $31.2 million for the nine months, a reduction from $62.0 million in the prior year.

Strategically, Xos completed the acquisition of ElectraMeccanica Vehicles Corp. on March 26, 2024, which provided an infusion of approximately $50.2 million in cash and enhanced liquidity. This acquisition involved the issuance of 1,766,388 shares of Xos common stock, resulting in Xos stockholders owning about 79% of the combined entity. To further improve its financial position, Xos implemented a reduction in force affecting approximately 26% of its workforce in October 2024, alongside temporary salary reductions for senior executives.

As of September 30, 2024, Xos reported cash and cash equivalents of $8.4 million, down from $11.6 million at the end of 2023. The company also faced substantial doubt regarding its ability to continue as a going concern due to ongoing net losses and cash outflows. Xos is exploring various capital-raising strategies, including debt and equity financing, to support its operations and growth.

The company continues to navigate supply chain challenges, particularly in sourcing critical components, which have been exacerbated by global economic conditions. Xos is actively working on strategies to mitigate these disruptions, including advance ordering and collaboration with suppliers.