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XL Fleet Is Down 83% For The Year, Is The Stock Undervalued?

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Updated: 21 Dec 2021
  • Electrification solutions offer an under-hyped slice of a ballooning market
  • XL Fleet announces the completion of Power Apex's charging infrastructure
  • Down 83% annually, XL Fleet might be seriously undervalued

 

With everyone glued to the latest head-turning EV, it’s worth looking just beyond the apex to avoid unnecessary hype and speculative herds. What I mean by this is that the EV market doesn’t revolve solely around cutting-edge vehicles; charging infrastructure, battery manufacturers, and state-of-the-art software are equally critical to the market, and so should hold equal value as the sector expands. 

Albeit, companies like XL Fleet (NYSE: XL) and EVgo (NASDAQ: EVGO) still appear undervalued, despite the occasional short-lived surge following sporadic news pieces. XL Fleet, a key player in developing electrification solutions for commercial and municipal fleets, announced today it has finished the installation of a series of charging stations for prominent clean energy company Apex – in order to power their Ford F electric trucks.

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However, there was no positive reaction in the market this morning, with XL stock price slipping a sharp 7.5%. As always, the market seems fastidious when it comes to partnerships – stock soared 22% following a Military contract last month. 

Eric Tech, CEO of XL Fleet, stated:

“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.”

With incessant selling pressure weighing on company stock, it might be assumed that today’s news amounted to little more than a drop in a deep, quiet ocean. The partnership with Power Apex is positive, yet failed to wow investors due to the lack of scale.

For XL Fleet to demonstrate long-term sustainability, they need to capitalize on increasing sustainability goals and the changing commercial landscape to a greater extent. This being said, XL Fleet certainly holds upside potential and thus is an EV stock to be taken seriously. 

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