Workhorse Group Receives HVIP Approval from California Air Resources Board for the W56
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Insights
The eligibility of Workhorse Group Inc.'s W56 electric vehicle for the California Air Resources Board's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project is a significant development for the company. This program is designed to encourage the adoption of cleaner vehicles by reducing the financial burden on purchasers. The $85,000 base voucher per W56 is a substantial incentive that could lower the barrier to entry for potential customers and increase the attractiveness of Workhorse's offering in the competitive EV market.
Given the increasing regulatory pressure for zero-emission vehicles, especially in California, Workhorse's strategic expansion into this market positions it to capitalize on the growing demand. The company's ability to produce up to 5,000 W56 units per year could signify a considerable increase in production capacity and potential revenue growth. The market for commercial EVs is expanding and Workhorse's HVIP approval may provide it with the leverage needed to secure a larger market share and establish itself as a leader in this niche segment.
Workhorse Group's announcement about the W56's HVIP eligibility could have positive implications for the company's financial performance. The incentive could lead to an increase in fleet orders, as evidenced by the recent fleet purchase order in California. This increase in sales volume could improve Workhorse's economies of scale, potentially reducing manufacturing costs and enhancing profit margins.
Investors should note the potential for increased cash flow from sales, which could be reinvested in further product development or expansion of the dealer network. However, it is crucial to monitor the company's ability to scale production effectively and manage the increased operational complexities that come with growth. The long-term success of Workhorse will depend on its ability to maintain product quality and customer satisfaction while scaling operations.
The HVIP eligibility is a testament to the environmental impact of Workhorse's W56 EV. This aligns with California's aggressive targets for reducing greenhouse gas emissions and transitioning to a zero-emission transportation system. The policy-driven demand for zero-emission commercial vehicles is expected to grow substantially as more states adopt similar mandates to California's.
From an environmental policy standpoint, Workhorse's progress can contribute to reducing the carbon footprint of the commercial transportation sector. The company's success in this area not only benefits the environment but also aligns with the broader societal shift towards sustainability. This could enhance Workhorse's brand reputation and create goodwill among environmentally conscious stakeholders, potentially leading to increased customer loyalty and market opportunities.
W56 Now Eligible for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project
CINCINNATI, Jan. 03, 2024 (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 the California Air Resources Board (“CARB”) determined the Company’s W56 electric vehicle (“EV”) is eligible for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (“HVIP”).
The HVIP incentive program reduces cost barriers for EV ownership in California to help transition the state to zero emissions. Through the HVIP incentive program, vehicle purchasers and participating dealers are eligible to apply for a base voucher of
The W56 is Workhorse’s first fully designed, purpose-built Class 5/6 model chassis platform. The Company began production of the W56 in September 2023 and recently received its first fleet purchase order for W56 step vans in California.
“The receipt of HVIP approval from CARB for the W56 is the next step for Workhorse to unlock growth opportunities and build market share in the EV step van segment,” said Workhorse CEO Rick Dauch. “We are continuing production of the W56 and have strategically expanded our regional dealer network in California and other states where we expect CARB mandates will be adopted. We have held numerous positive product demonstrations in California, and customer interest for the W56 is strong. With the HVIP approval and capacity to build up to 5,000 W56 units per year, Workhorse is well positioned to advance our product roadmap and drive growth.”
Additional information about the W56 can be found on Workhorse’s website here.
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.
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, expected growth in business and our ability to execute on the strategies discussed above. 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, including the financing agreements discussed above, 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; our ability to execute on the strategies discussed above; 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 Investor Relations
949-574-3860
WKHS@gateway-grp.com
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