Benchmark downgraded Xos to Speculative Hold from Buy with a price target of $1, down from $4. The rating reflects the slower than expected acceleration of deliveries and the cash needs to fund growth after Xos reported Q3 results, including a loss at the EBITDA level of $10.7M. By the firm’s estimates, the company will likely burn through existing cash balances over the next six months and will likely fund operating by accessing a Standby Equity purchase agreement or will pursue other capital market options, the analyst tells investors.
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