Leap and Xos partner to create revenue from electric fleet charging

SAN FRANCISCO & LOS ANGELES - Leap and Xos, Inc. (NASDAQ:XOS) announced a partnership Tuesday that will allow commercial electric truck fleets to generate revenue by supporting the power grid during energy emergencies.

The collaboration connects Xos Hub mobile battery-integrated chargers to energy markets through Leap’s virtual power plant platform. During grid emergencies, participating fleets can automatically shift from grid power to their Xos Hub batteries, helping prevent blackouts while earning money through California’s Demand Side Grid Support program.

Xos manufactures electric stepvans used by major logistics companies including FedEx and UPS. The company’s Xos Hub technology provides flexible charging solutions without requiring permanent infrastructure installation.

"Leveraging our complementary technologies, Leap and Xos are tapping new value streams for commercial truck fleets," said Jason Michaels, CEO of Leap.

Dakota Semler, CEO of Xos, added that the virtual power plant offering "gives fleet customers advanced energy capabilities without compromising control or convenience."

The partnership builds on Leap’s contributions to California’s grid stability during last summer’s heatwaves. Leap’s platform automates energy market operations, allowing Xos to deploy its grid services without additional hardware or significant operational costs.

Leap currently manages over 200,000 energy sites and devices across U.S. energy markets, working with more than 90 technology partners. The announcement was made in a company press release.

In other recent news, Xos Inc. reported a challenging first quarter of 2025, with revenue dropping to $5.9 million from $11.5 million in the previous quarter and $13.2 million in the same period last year. The decline in revenue was accompanied by a reduction in unit sales, with only 29 units sold compared to 51 in Q4 2024 and 62 in Q1 2024. Despite these setbacks, Xos has set a full-year 2025 revenue guidance between $50.2 million and $65.8 million. The company is also focusing on strategic innovations, including the launch of the MD XT medium duty chassis cab, which is expected to ramp up production by Q3 2026.

In addition to its earnings report, Xos is navigating supply chain disruptions and tariff challenges, which have prompted the company to explore supplier diversification and cost reduction strategies. The company has also been actively engaging with analysts and investors, with discussions highlighting the potential market for the MD XT and the ongoing development of the ChargeHub. Analyst firms, such as ROTH Capital Partners, have shown interest in the company’s new product offerings and market strategies. These developments reflect Xos’s commitment to growth, liquidity, and margin improvement amid a tough market environment.

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