{ "docId": "019dd923-622c-750b-8b97-2cc02e385014", "docSlug": "86aeeaf4ca9c", "documentTitle": "XL Fleet (XL)", "authorId": "51_Muddy_Waters", "authorName": "Muddy Waters Capital", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2021-03-03 00:00:00", "orientation": "landscape", "aspectRatio": 1.2941177, "pageNumber": 8, "pageCount": 53, "prevPage": 7, "nextPage": 9, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 2, "notes": "Uses direct quotes from former employees to substantiate the claim of fraudulent reporting.", "elementsJson": [ "headline_text", "paragraph", "callout_box", "quote_block" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b97-2cc02e385014/8", "deckHref": "/decks/019dd923-622c-750b-8b97-2cc02e385014", "deckJsonHref": "/decks/019dd923-622c-750b-8b97-2cc02e385014.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b97-2cc02e385014#slide-8", "components": [ { "bbox": null, "kind": "callout", "text": "XL MANAGEMENT SYSTEMATICALLY INFLATES THE COMPANY'S BACKLOG", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-14dc-7419-88c8-d8ff877f5675", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.8, "x": 0.1, "y": 0.39 }, "kind": "image", "text": "Accelerating Unit Sales Supported by Robust Pipeline... $220m+ 12-mo sales pipeline 3x revenue growth in 2020", "attrs": null, "subkind": "screenshot", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2648de2c-c30a-44c5-beb5-e23156bbc20d", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "metric", "text": "sales pipeline: $220m+", "attrs": null, "subkind": "primary", "toolName": "Quantification", "toolSlug": "quantification", "confidence": null, "componentId": "019dd953-14dc-7419-88c8-e3ec9faa4685", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.09, "w": 0.9, "x": 0.05, "y": 0.24 }, "kind": "paragraph", "text": "XL claims a backlog of $220+ million. This number is key to XL's sales projections, appearing twice in XL's SPAC slide deck. However, our conversations with former employees suggest XL's \"pipeline\" is a fiction created under pressure from senior managers.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "0fec103b-7c39-400d-9593-0f74f2d16679", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.57 }, "kind": "quote", "text": "\"If you even talk to a guy... I was always skeptical of that—if it's not legitimate, why the hell are we putting it in?\" – XL Former Employee B", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "39780c64-67b7-4c2f-9b70-386cda3b74c8", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.12, "w": 0.9, "x": 0.05, "y": 0.75 }, "kind": "quote", "text": "\"Once a quarter before board meetings... A minimum of four times a year he would exaggerate my pipeline substantially to report to the board.\" – Former XL Employee A", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "48401103-8167-4ef5-bf4d-b9953475e54f", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "\"If you even talk to a guy, whether he expressed interest or not, you always created an opportunity for 5-10 vehicles [in Salesforce]. OEM? 50 - 100 vehicles... The numbers always looked good to the [XL] board, and they looked good to people like you... Me and the other salespeople always talked... I was always skeptical of that—if it’s not legitimate, why the hell are we putting it in?\" — XL Former Employee B; \"Once a quarter before board meetings, I would find that a bunch of my deals with larger [potential sales] numbers behind them would have been exaggerated substantially in their probability to close: from 25% up to 75%. For that brief week when the board was in town, my deals were at 75%, and I would have nothing to do with that. That was [manager name redacted]. A minimum of four times a year he would exaggerate my pipeline substantially to report to the board.\" — Former XL Employee A", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-14dc-7419-88c8-dfbd68d534d3", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.03, "w": 0.73, "x": 0.05, "y": 0.19 }, "kind": "title", "text": "XL MANAGEMENT SYSTEMATICALLY INFLATES THE COMPANY'S BACKLOG", "attrs": null, "subkind": "action-title", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "95d82d71-b17a-4dd7-ac20-bb24b0efb3ed", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.64, "x": 0.18, "y": 0.09 }, "kind": "title", "text": "Exaggerated Backlog and Customer Results", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "91c9eb82-bb23-4495-adf9-cb0b6cb0f234", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "fraud-exposure", "slug": null, "matchId": "1e132141-ebb6-40d5-87cf-482e63153b03", "evidence": "Uses employee testimony to contradict company claims", "confidence": 0.9 } ], "arcBeats": [ { "to": 24, "from": 7, "beatId": "d57d5f7c-550f-47ee-a761-71fdfdaba0f8", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "The document exposes contradictions in XL Fleet Corp's claims", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }