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  "documentTitle": "XL Fleet (XL)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2021-03-10 00:00:00",
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  "notes": "The slide functions as a rebuttal to XL's corporate response, focusing on customer testimonials vs. marketing claims and the financial implications of the SPAC deal.",
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      "text": "The absence of a fairness opinion is telling because fairness opinions are notoriously favorable to acquirers.",
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      "text": "XL does not deny that this prior raise was at a fraction of the SPAC transaction valuation. It attempts to deflect from this dichotomy by pointing to its \"more than $400 million of cash on the balance sheet\".",
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      "text": "XL's response pushes back on these claims, but offers no specific support. Ironically one of the fleet managers who provided a testimonial on XL's website told us the fuel savings was only approximately 10%.",
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      "text": "Our report quoted former XL employees and a fleet manager with XL hybrids describing the typical customer fuel savings as falling well short of 25% / 50%. The consensus seemed to be that typical fuel savings were only 5% to 10% with the XL system.",
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      "kind": "paragraph",
      "text": "Much of XL's response to the mileage misrepresentation referenced the EPA testing standard. However, the former employees never claimed that XL's testing was not in line with EPA standards. Their claim is that testing on a dynamometer does not simulate real world driving conditions and fuel savings.",
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      "text": "The absence of a fairness opinion is telling because fairness opinions are notoriously favorable to acquirers. We conclude that the SPAC sponsors were concerned (or knew) that they would not receive a credible fairness opinion affirming the valuation of the XL purchase.",
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      "text": "4 Pivotal Investment Corporation II S-4 filed October 2, 2020, p. 6.",
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      "kind": "title",
      "text": "Was XL's last equity raise (Series D) at $73 million?",
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