Xos Shares Surge 120% After Securing First U.S. Air Force Contract
Shares of Xos Inc (NASDAQ:XOS) surged by 120% in premarket trading after the company secured its first defense contract with the U.S. Air Force, marking a significant expansion into the military market. The prototype Other Transaction Agreement will see Xos adapt its commercial energy storage technology for use in field operations where traditional grid access is limited. The project involves modifying Xos's mobile battery system to support electrified vehicles and equipment used by the Air Force Global Strike Command. Work on the contract, which spans until late 2027, will be conducted at a facility in Byrdstown, Tennessee. The deal highlights the dual-use potential of Xos’s technology across both commercial and defense sectors. The U.S. Department of Defense is one of the largest energy consumers globally, with growing demand for resilient power solutions as part of broader military electrification efforts. This contract positions Xos to enter a market projected to reach $19.87 billion by 2033.
