Xos, Inc. (NASDAQ:XOS) Q4 2022 Earnings Call Transcript

In addition, when you look at operating expenditure as well, we are being laser-focused on cost there and we’ve already guided in the quarter, we expect these levels to come down as well.

Donovan Schafer: Okay.

Dakota Semler: Donovan, I would just add that as we talk about customer financing, one thing you have to consider is the diversifying mix of customers that we’re seeing this year. When we talk about large national fleets, many of them are businesses that utilize their fleet as a delivery service for their own products with their manufacturing. Many of them multi-multi-billion dollar companies have access to capital either through their own lines of credit or their own credit facilities that are well below the equipment lines that are publicly available to smaller and medium sized fleets. And many of them have structures or facilities in place with large FMCs or fleet management companies or banks that specifically focus on equipment financing such as Wells Fargo.

And so those customers rarely have access to credit issues where they can’t already access credit that’s either below market. And in many cases, some of these customers will even finance it off their own balance sheet. So, it’s not an issue as our customers continue to diversify to those larger national accounts.

Donovan Schafer: Okay. Thank you. That’s very helpful. I’ll take the rest of my questions offline.

Dakota Semler: Thank you.

Operator: Those are all the questions that we have today. Ladies and gentlemen, thank you for your participation. This does conclude today’s teleconference. You may disconnect your lines and have a wonderful day.