XL Fleet jumps 68% after EV company goes public via SPAC

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XL Fleet jumps 68% after EV company goes public via SPAC
XL Fleet via Business Wire
  • Shares of XL Fleet jumped as much as 68% on Wednesday during the company's second day of trading after merging with special purpose acquisition company Pivotal Investment Corporation II.
  • XL Fleet transforms existing commercial vehicles like small trucks into electric vehicles. The company says it makes vehicles cleaner and more fuel efficient without compromising operations.
  • Shares of XL fleet traded around $25 Wednesday afternoon after hitting an intraday high of $28.68.
  • XL Fleet is the latest company to go public through a blank check company during what Goldman Sachs is calling the "year of the SPAC."
  • Visit Business Insider's homepage for more stories.

Shares of XL Fleet jumped as much as 68% on Wednesday during the company's second day of trading after merging with special purpose acquisition company Pivotal Investment Corporation II.

XL Fleet transforms existing commercial vehicles like small trucks into EVs. Before going public, the company already electrified commercial vehicles from auto giants like Ford, Chevrolet, and GMC.

XL Fleet received approximately $350 million in cash proceeds from the SPAC merger. According to a statement, the funds will be used to advance XL Fleet's electrification goals and develop solutions to electrify larger commercial trucks. The statement also said XL Fleet has plans to expand internationally.

Shares of XL fleet traded around $25 Wednesday afternoon after hitting an intraday high of $28.68.

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"As the leader in commercial fleet electrification, XL Fleet turns many of the most popular class 2-6 vehicles from Ford, Chevrolet, GMC and Isuzu into hybrid and plug-in hybrid electric vehicles, without disrupting their performance," the company website reads. "We make them cleaner and more fuel efficient while leaving the OEM powertrain (engine, transmission, fuel and exhaust systems) completely intact. It's a simple way to improve vehicle MPG and meet sustainability goals without compromising your operations."

XL Fleet is the latest company to go public through a blank check company during what Goldman Sachs is calling the "year of the SPAC." According to a Goldman note last week, 219 SPACs have raised $73 billion in proceeds in 2020. That outpaces traditional IPOs by $6 billion.

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The transaction was approved by Pivotal's stockholders on Monday. The combined company, XL Fleet Corp, started trading on the the New York Stock Exchange on Tuesday listed under the ticker symbols "XL" and "XL WS."

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