XL Fleet Corp (NYSE:XL) is up 7% after the vehicle electrification solutions for municipal and commercial fleets leader announced an award of contracts by the US Army’s Project Manager Transportation Systems and Defense Innovation Units to prototype fuel-saving tech for military vehicles.
On Tuesday, XL stock jumped 6.68% at $4.95 with more than 29.72 million shares, compared to its average volume of 1.92 million shares. The stock has moved within a range of $4.8210 – 6.3800 after opening trading at $5.35.
XL Fleet Awarded Pilot Project With Department of Defense to Prototype Fuel-Saving Technology for Tactical Vehicles
The company won the contract after a competitive bidding process, and it is one of the two firms that received the contract to create a prototype tech project for military vehicles through 2022. Most importantly, the tech the companies are creating haspotentialapplicationacross tens of thousands of current vehicles in several military applications. The pilot commenced on October 1, 2021, and it will go on for up to November 2022.
The contract to XL is part of the Department of Defence’s current efforts seeking to address major fuel-saving initiatives for the over quarter million military vehicles. Usually, the vehicles spend most of their time idling, and they need much fuel to operate onboard electric power systems as well as keep cabin microclimate control. XL is worth watching in the coming days.
“We are honored by the opportunity to compete for this highly selective U.S. Government contract to develop fuel-saving solutions for a wide range of applications for tactical military vehicles,” said Tod Hynes, Founder and President of XL Fleet. “XL Fleet’s proven technology, flexible platform and deep experience in applying sustainable technologies to fleet vehicles make us an ideal fit for the U.S. military’s specialized needs for this project. We can help extend the operational range of their tactical vehicles, while supporting our troops’ safety and providing significant fuel and operating cost savings and reducing greenhouse gas emissions.”
XL stock is below the 20-Day and 50-Day Moving averages of $5.23 and $5.62 respectively. Moreover, the stock is trading below the 200-Day moving average of $7.88 The stock is down 8% in the past month.