Workhorse Group Receives First Fleet Order for W56 Step Van

Rhea-AI Summary

Workhorse Group Inc. (Nasdaq: WKHS) has received its first fleet order for the W56 step van from Mission Linen Supply, a California based, privately-held company. The initial 15-vehicle order is expected to be delivered in 2024. The W56 provides a unique blend of high reliability, quality, and serviceability, with a benchmark payload capacity of up to approximately 10,000 pounds and a range of up to 150 miles. The W56 step van also offers a large 1,000+ cubic foot cargo box with lowered step-in and wide cabin door for easier entry and exit. Workhorse CEO Rick Dauch expressed excitement about this milestone, emphasizing the vehicle's capability and reliability. Mission Linen Supply's Senior Manager for Fleet and Safety, Corporate Services, Evelyn Scott-Phillips, also praised the W56's advanced technology and features, highlighting the superb support from the Workhorse team during the demo.

Insights

Automotive Industry Analyst

The announcement by Workhorse Group Inc. regarding its first fleet order for the W56 step van from Mission Linen Supply signifies a strategic advancement into the commercial electric vehicle (EV) market, which is of considerable interest to stakeholders in the automotive and clean technology sectors. This order represents a tangible step towards the adoption of EVs in commercial operations, a trend that is expected to grow as businesses seek to reduce their carbon footprint and comply with increasingly stringent environmental regulations.

The W56 model's high payload capacity and range are particularly notable as they address two common concerns regarding EVs: load capacity and driving range. The vehicle's design, prioritizing ergonomics and driver comfort, may also give Workhorse a competitive edge in the market. The successful field test and the subsequent order could be seen as a validation of the vehicle's design and functionality, potentially leading to increased market confidence in Workhorse's products.

From a financial perspective, fleet orders such as this one are critical for Workhorse's revenue stream and can lead to long-term partnerships, scaling opportunities and possibly, repeat orders. However, the impact on the company's stock will depend on the execution of the delivery and the market's perception of Workhorse's ability to fulfill orders and scale production.

Environmental Policy Expert

The transition to zero-emission vehicles, as represented by Workhorse's W56 step van, aligns with global efforts to mitigate climate change. The environmental implications of such technology are substantial, with potential reductions in greenhouse gas emissions and fossil fuel dependency. The adoption by companies like Mission Linen Supply reflects a growing corporate responsibility trend towards sustainability.

Regulatory tailwinds, such as potential subsidies for zero-emission vehicles and penalties for high-emission vehicles, could further incentivize the adoption of EVs in commercial fleets. This order might encourage other businesses to consider similar transitions, thereby amplifying the environmental benefits and potentially influencing future environmental policy and vehicle standards.

Financial Analyst

The market typically responds positively to news of new orders for companies, especially within the high-growth EV sector. Workhorse's announcement may be perceived as an indicator of product-market fit and operational capabilities, potentially affecting investor sentiment. The long-term financial health of Workhorse will hinge on its ability to maintain a robust order book, manage production costs and deliver quality products on time.

Investors should monitor the company's production capacity and any subsequent orders following this initial fleet purchase. The ability of Workhorse to capitalize on the burgeoning EV market and to scale up its operations to meet demand will be crucial for its future profitability and market share. However, it is also important to remain cognizant of the risks associated with the capital-intensive nature of the automotive industry, particularly for newer entrants in the EV space.

CINCINNATI, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Workhorse Group Inc. (Nasdaq: WKHS) (“Workhorse” or “the Company”), an American technology company focused on pioneering the transition to zero emission commercial vehicles, today announced it has received its first fleet order for the W56 step van from Mission Linen Supply, a California based, privately-held company that is a leading provider of products and services to hospitality, medical and industrial businesses. The initial 15-vehicle order is expected to be delivered in 2024.

The W56 provides a unique blend of high reliability, quality and serviceability. The zero emission delivery work van is designed to meet the challenging demands of the commercial vehicle industry, supporting benchmark payload capacity of up to approximately 10,000 pounds and with a range of up to 150 miles. The W56 step van also offers a large 1,000+ cubic foot cargo box with lowered step-in and wide cabin door for easier entry and exit. Built with the delivery driver in mind, the cabin has been ergonomically designed while still providing safety and comfort during even the longest shifts.

“This purchase order marks an important milestone for Workhorse as we commercialize our purpose-built Class 5/6 vehicle,” said Workhorse CEO Rick Dauch. “Following the start of W56 step van production in September, we were able to deliver a fully outfitted demo vehicle to Mission Linen Supply in just six weeks. The W56 performed well in field tests and their team quickly saw that we have engineered an incredibly capable and reliable delivery van. We look forward to working with both our dealer partner, Kingsburg Truck Center, and the team at Mission Linen Supply as they electrify their fleet.”

Evelyn Scott-Phillips, Senior Manager for Fleet and Safety, Corporate Services at Mission Linen Supply added: “The W56’s advanced technology and features made it the right zero emission vehicle for us to add to our fleet. From the start of our demo, we received superb support from the Workhorse team, and we were impressed by the vehicle’s performance in field tests. We look forward to receiving the vehicles in the new year.”

About Workhorse Group Inc.
Workhorse is a technology company focused on providing ground and air-based electric vehicles to the last-mile delivery sector. As an American original equipment manufacturer, we design and build high performance, battery-electric trucks and drones. Workhorse also develops cloud-based, real-time telematics performance monitoring systems that are fully integrated with our vehicles and enable fleet operators to optimize energy and route efficiency. All Workhorse vehicles are designed to make the movement of people and goods more efficient and less harmful to the environment. For additional information visit workhorse.com.

About Mission Linen Supply
Mission Linen Supply is a family-owned, privately held company and a leading provider of products and services to hospitality, healthcare and industrial businesses. Founded in 1930 by George “Ben” Page, the company has grown from a one-man operation into a leading player in the linen rental and uniform business. With nearly 85 years of industry knowledge and an experienced workforce, Mission is widely recognized for its ability to understand, anticipate and meet its customers’ needs while providing environmentally friendly goods and services. Headquartered in Santa Barbara, California, the company employs more than 2,500 people in five western states.

About Kingsburg Truck Center
Kingsburg Truck Center is Central San Joaquin Valley’s largest work truck dealership and takes great pride in providing customers with the best quality trucks that are dependable for any job. The Center also specializes in building, fabricating, and installing various applications for specific industry needs, making it a One-Stop Shop for Everything Work Truck. Kingsburg Truck Center has provided customers with reliable work trucks since 1991.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. When used in this release, the words “anticipate,” “expect,” “plan,” “believe,” “seek,” “estimate” and similar expressions are intended to identify forward-looking statements. These are statements that relate to future periods and include, but are not limited to, statements about the features, benefits and performance of our products, our ability to introduce new product offerings and increase revenue from existing products, expected expenses including those related to selling and marketing, product development and general and administrative, our beliefs regarding the health and growth of the market for our products, anticipated increase in our customer base, expansion of our products functionalities, expected revenue levels and sources of revenue, expected impact, if any, of legal proceedings, the adequacy of our liquidity and capital resources, and expected growth in business. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained in this release. Factors that could cause actual results to differ materially include, but are not limited to: our ability to develop and manufacture our new product portfolio, including the W4 CC, W750, W56 and WNext programs; our ability to attract and retain customers for our existing and new products; risks associated with obtaining orders and executing upon such orders; the unavailability, reduction, elimination, termination or adverse application of government subsidies, incentives and/or regulations, including the Advanced Clean Fleet Regulation adopted by the California Air Resource Board; supply chain disruptions, including constraints on steel, semiconductors and other material inputs and resulting cost increases impacting our company, our customers, our suppliers or the industry; our ability to capitalize on opportunities to deliver products to meet customer requirements; our limited operations and need to expand and enhance elements of our production process to fulfill product orders; our inability to raise additional capital to fund our operations and business plan; our ability to regain compliance with the listing requirements of the Nasdaq Capital Market and otherwise maintain the listing of our securities thereon; our ability to protect our intellectual property; market acceptance for our products; our ability to obtain sufficient liquidity from operations and financing activities to continue as a going concern and, our ability to control our expenses; potential competition, including without limitation shifts in technology; volatility in and deterioration of national and international capital markets and economic conditions; global and local business conditions; acts of war (including without limitation the conflicts in Ukraine and Israel) and/or terrorism; the prices being charged by our competitors; our inability to retain key members of our management team; our inability to satisfy our customer warranty claims; the outcome of any regulatory or legal proceedings; and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission (“SEC”), including under the “Risk Factors” section of our annual report on Form 10-K and our quarterly reports on Form 10-Q, each as filed with the SEC. Forward-looking statements speak only as of the date hereof. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

Media Contact:
Aaron Palash / Greg Klassen
Joele Frank, Wilkinson Brimmer Katcher
212-355-4449

Investor Relations Contact:
Matt Glover and Tom Colton
Gateway Group
949-574-3860
WKHS@gateway-grp.com

FAQ

What is the first fleet order received by Workhorse Group Inc. (Nasdaq: WKHS)?

The first fleet order received by Workhorse Group Inc. (Nasdaq: WKHS) is for the W56 step van from Mission Linen Supply, a California based, privately-held company.

What is the expected delivery timeline for the initial 15-vehicle order?

The initial 15-vehicle order is expected to be delivered in 2024.

What are the key features of the W56 step van?

The W56 step van provides a unique blend of high reliability, quality, and serviceability, with a benchmark payload capacity of up to approximately 10,000 pounds and a range of up to 150 miles. It also offers a large 1,000+ cubic foot cargo box with lowered step-in and wide cabin door for easier entry and exit.

Who expressed excitement about the milestone of receiving the fleet order?

Workhorse CEO Rick Dauch expressed excitement about the milestone, emphasizing the vehicle's capability and reliability.

Who praised the W56's advanced technology and features?

Mission Linen Supply's Senior Manager for Fleet and Safety, Corporate Services, Evelyn Scott-Phillips, praised the W56's advanced technology and features, highlighting the superb support from the Workhorse team during the demo.