Wednesday, March 10, 2021 9:04:52 AM
https://www.muddywatersresearch.com/research/xl/still-spac-trash/
On March 8, 2021, XL issued a multi-page response to our March 3rd report.1 The response did not deny key claims of company misrepresentations. On the next page is a summary table of the key claims that we made in our initial report, and whether in our view XL specifically denied them in its response. Following the table, we discuss certain of XL’s responses to the claims in more detail.
XL did not deny exaggerating its purported $220 million pipeline. XL also did not deny that many of its featured customers have failed to reorder, or that its customer reorder rate is only approximately 10%. XL partially denied and partially admitted the claims of disappointing gas savings. While it made a general statement that its customers “regularly achieve” expected mileage gains, it simultaneously admitted that customers’ real world experiences can materially differ from the purported gas savings. To support its gas savings proposition, it points investors to testimonials on its website. One of the testimonials is from an employee of a Fortune 500 company, but the testimonial gives no specific savings numbers. However, we spoke to that exact person, and he specified that the fleet fuel savings his company received was only approximately 10%. XL also did not deny that its City of Seattle case study significantly misrepresented the customer’s results.
XL’s strongest denials centered around the assumptions we used to calculate fleet ROIs. We disagree with its responses on the specific assumptions that drive the ROI calculation, but on most of those assumptions, reasonable people can disagree. However, low reorder rates certainly imply that the ROI for most customers is in line with our estimate.
We understand that following our report, XL’s counsel sent threatening emails to former employees warning them about speaking with investors. We see that as consistent with a company that is dishonest. Based on XL’s response with its numerous non-denials, we continue to believe that the company greatly exaggerates its pipeline, performance, and potential sales. In short, XL is more SPAC trash.
Download Report
pdf | 839 KB
Use of Muddy Waters Research reports is limited by the Terms of Use on its website, which are as follows. These Terms of Use govern current reports published by Muddy Waters Research and supersede any prior Terms of Use for older reports of Muddy Waters Research, which you may download from the Muddy Waters Research’s website.
Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)More
March 10, 2021
Filed in: XL Fleet Corp.
Recent SPRU News
- Spruce Power to Release First Quarter 2024 Results and Host Conference Call on May 15 • Business Wire • 05/01/2024 08:05:00 PM
- Spruce Power CEO Chris Hayes to Participate in a Water Tower Research Fireside Chat on Friday, April 26 at 11:00 AM ET • Business Wire • 04/24/2024 08:30:00 PM
- Spruce Power Adds Industry Veteran to Lead Asset Operations • Business Wire • 04/24/2024 08:05:00 PM
- Spruce Power Holding Corporation Announces Leadership Changes • Business Wire • 04/15/2024 12:30:00 PM
- Spruce Power Reports Fourth Quarter and Full-Year 2023 Results • Business Wire • 03/14/2024 08:05:00 PM
- Spruce Power to Release Fourth Quarter and Full-Year 2023 Results and Host Conference Call on March 14 • Business Wire • 02/28/2024 09:10:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/22/2024 10:28:03 PM
- Spruce Power Launches ‘Spruce Pro’ Brand, Expanding its Servicing Solutions into the Commercial Solar Market • Business Wire • 01/10/2024 12:30:00 PM
- Spruce Power Announces Expansion of Operating Headquarters in Houston, Texas • Business Wire • 12/14/2023 08:52:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/24/2023 07:54:32 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/13/2023 10:15:34 PM
- Spruce Power Announces Record Revenue in Third Quarter 2023 Earnings Results • Business Wire • 11/09/2023 09:05:00 PM
- Spruce Power to Release Third Quarter 2023 Results and Host Conference Call on November 9 • Business Wire • 10/16/2023 08:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/06/2023 09:05:49 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/04/2023 08:37:50 PM
- Spruce Power Announces Reverse Stock Split • Business Wire • 10/02/2023 09:08:00 PM
- Spruce Power Announces Resolution of SEC Inquiry of XL Fleet • Business Wire • 09/29/2023 02:02:00 AM
- Spruce Power Holding to Pay $11 Million Penalty to Settle Claims of Misleading Investors • Dow Jones News • 09/28/2023 11:59:00 PM
- Spruce Power Announces Relocation of Corporate Headquarters in Denver, Colorado • Business Wire • 09/18/2023 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 01:00:02 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/13/2023 12:58:05 AM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 08/23/2023 07:10:28 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 08/23/2023 01:43:56 PM
- Spruce Power Acquires Portfolio of 2,400 Residential Solar Systems and Contracts • Business Wire • 08/21/2023 11:30:00 AM
- Spruce Power Announces Relief Plan for Maui Customers • Business Wire • 08/14/2023 09:46:00 PM
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM