Workhorse Group Receives Second Fleet Order for W56 Step Van
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Insights
The recent purchase order for Workhorse Group's W56 step van represents a significant advancement in the company's sales and operational strategy. The deal with a leading commercial fleet operator not only validates the W56's market fit but also signals potential growth in the electric commercial vehicle sector. The emphasis on zero-emission vehicles aligns with increasing regulatory pressures for sustainable transportation solutions. The ability of the W56 to handle substantial payloads while maintaining zero emissions could position Workhorse as a competitive player in the logistics and delivery industry, which is under pressure to reduce its carbon footprint.
Furthermore, the conversion from demo vehicle trials to sales indicates a successful product demonstration phase, which is critical for market penetration. The scheduled demo placements in the first quarter suggest a proactive approach to marketing and customer engagement. The impact on Workhorse's stock could be positive as investors typically respond well to tangible sales progress, especially in a high-growth industry like electric vehicles (EVs). However, the actual financial impact will depend on the company's ability to scale production and deliver on orders without significant delays or cost overruns.
The announcement of a 15-vehicle order for Workhorse's W56 step van could be indicative of the company's improving revenue streams and operational execution. The delivery scheduled for 2024 will likely contribute to that fiscal year's financial performance. As fleet orders are a reliable indicator of future revenue, this deal may positively influence Workhorse's financial projections and investor confidence.
Investors should monitor the company's ability to fulfill this order on time and within budget, as these factors will be critical in maintaining customer satisfaction and securing repeat business. Additionally, the order's impact on the company's balance sheet, cash flow and profitability metrics should be evaluated. It's important to consider the capital requirements for scaling up production and the potential need for additional financing, which could dilute existing shareholders.
The Workhorse Group's focus on zero-emission commercial vehicles is timely, as the automotive industry is rapidly transitioning towards sustainable transportation. The W56 step van's design, which emphasizes ergonomics and driver comfort, addresses a niche in the commercial EV market that prioritizes driver retention and satisfaction. The vehicle's payload capacity and range are competitive within the Class 5/6 category, which typically includes medium-duty delivery trucks.
The industry should note the strategic significance of Workhorse's partnership with Kingsburg Truck Center for distribution. This relationship could streamline the delivery process and improve post-sale support, which are critical components for fleet operators. The long-term success of Workhorse in this arena will depend on their ability to maintain technological innovation, manage production costs and ensure reliability at scale. The performance of the W56 in real-world fleet operations will be closely watched by industry stakeholders as a benchmark for the viability of EVs in high-demand commercial applications.
CINCINNATI, Jan. 11, 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 it has received its second fleet purchase order for the W56 step van from a leading commercial fleet operator. The 15-vehicle order is expected to be delivered in 2024 by Workhorse’s dealer, Kingsburg Truck Center.
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.
“With this new fleet order, we are building momentum and ramping up sales for our purpose-built Class 5/6 vehicle,” said Workhorse CEO Rick Dauch. “This is our second conversion from a demo vehicle trial to a sale for the W56 since we started production in September. We have a number of fully outfitted demo vehicle placements scheduled in the first quarter of this year and look forward to successful performance of our incredibly capable and reliable delivery van.”
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, 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
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