The Company sources raw materials including aluminum, steel, phosphate, lithium, iron, and copper. Pricing is influenced by market conditions and external factors such as supply and demand and market speculation. The Company secures raw materials and components globally to support its operations. It operates under varying and sometimes conflicting rules, tariffs, and import restrictions that can change with limited notice. In response to federal policy actions, including tariffs under the International Emergency Economic Powers Act (IEEPA) and Section 301 of the Trade Act of 1974, the Company has developed an adaptive supply chain strategy to manage tariff cost changes while maintaining suppliers that meet requirements for reliability, durability, financial stability, and quality. Tariff rates on auto parts sourced from China have fluctuated significantly, peaking at 173.4% in April 2025 and moderating to approximately 28.4% as of the filing date. Recent court decisions may provide some relief from IEEPA-based tariffs; however, the regulatory environment remains uncertain and subject to change, potentially impacting sourcing from certain regions or access to key suppliers.
Xos Inc's Comment on Supply Chain
The Company sources raw materials including aluminum, steel, phosphate, lithium, iron, and copper. Pricing is influenced by market conditions and external factors such as supply and demand and market speculation. The Company secures raw materials and components globally to support its operations. It operates under varying and sometimes conflicting rules, tariffs, and import restrictions that can change with limited notice. In response to federal policy actions, including tariffs under the International Emergency Economic Powers Act (IEEPA) and Section 301 of the Trade Act of 1974, the Company has developed an adaptive supply chain strategy to manage tariff cost changes while maintaining suppliers that meet requirements for reliability, durability, financial stability, and quality. Tariff rates on auto parts sourced from China have fluctuated significantly, peaking at 173.4% in April 2025 and moderating to approximately 28.4% as of the filing date. Recent court decisions may provide some relief from IEEPA-based tariffs; however, the regulatory environment remains uncertain and subject to change, potentially impacting sourcing from certain regions or access to key suppliers.
Sources:
Xos Inc 's official press releases and regulatory filings; CSIMarket.com's supply-chain research; and the financial filings and press releases of other companies cited in this report.
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