Xos (XOS) Stock Forecast & Price Target

Xos Inc. has demonstrated a significant improvement in its financial performance with a strong increase in deliveries, achieving a record of 135 units in the latest quarter compared to only 29 in the prior period, largely due to contracts with major clients like UPS and FedEx. The company is also focusing on enhancing its liquidity position and has reported a quarterly free cash flow of $4.6 million, showcasing its ability to navigate the challenging tariff environment while maintaining a positive outlook for future operations. Additionally, Xos is strategically adjusting its supply chain to mitigate ongoing tariff pressures, reaffirming conservative revenue guidance while lowering non-GAAP operating loss expectations, which underscores its commitment to balancing growth and margin expansion.

Xos Inc. has reported declining non-GAAP gross margins, which fell to 15.0% from 23.2% in the prior period, largely driven by increased tariffs impacting both vehicle and powertrain sectors. The company's first quarter FY25 vehicle deliveries plummeted to 29, significantly below the previous quarter's 297 vehicles and leading to total revenue of $5.9 million, compared to the anticipated $10.2 million. Additionally, despite maintaining a strict capital management plan, the firm experienced a net loss of $10.2 million, indicating ongoing financial strain amid challenging macroeconomic conditions.