Workhorse Receives HVIP Eligibility from the California Air Resources Board

Rhea-AI Summary

Workhorse Group Inc. (Nasdaq: WKHS) announced eligibility for its C-Series all-electric delivery trucks under California's Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). The California Air Resources Board (CARB) granted the Executive Order A-445-0003, allowing specific models to qualify for vouchers of up to $50,000 per vehicle, enhancing affordability for customers. While the HVIP program is currently on hold for new requests until fall 2020, Workhorse maintains its eligibility, which is expected to boost sales and support environmental goals.

Positive

• C-Series trucks eligible for HVIP, potentially reducing costs for California customers.
• Vouchers up to $50,000 per vehicle can increase market competitiveness.
• First medium-duty BEV OEM certified by both EPA and CARB.

Negative

• HVIP program currently withholding additional voucher requests until fall 2020.

CINCINNATI, July 28, 2020 /PRNewswire/ -- Workhorse Group Inc. (Nasdaq: WKHS) ("Workhorse" or the "Company"), an American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, announced that its C-Series all-electric delivery trucks have been deemed eligible for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project ("HVIP") program by the California Air Resources Board ("CARB").

Earlier this month, the Company announced that it had received Executive Order: A-445-0003 from CARB, designating its trucks as zero-emission vehicles in the state of California. Obtaining an Executive Order was also one of the preliminary requirements in order to be considered for the HVIP program. With its eligibility into the program confirmed, certain Workhorse C-Series vehicles can now qualify for monetary vouchers, helping to reduce the total cost for any purchaser domiciled in the state of California.

Workhorse's 2020 model year C-1000 Standard Range (4-pack), C-650 Extended Range (4-pack) and C-650 Standard Range (2-pack) battery electric step vans are eligible for monetary vouchers of up to $50,000 per vehicle. While the HVIP program is currently withholding additional voucher requests until the fall of 2020, Workhorse will remain on the eligible vehicle list until additional funding has been designated for the program.

"Our eligibility for the HVIP program is expected to help dramatically reduce purchasing costs for California-based potential customers when additional funding becomes available, which is expected in the fall of this year," said Workhorse CEO Duane Hughes. "CARB's commitment to a greener future through the HVIP program has been a tremendous catalyst for the EV industry at large, and we look forward to maximizing the benefits of the program to increase our future sales as well as reduce carbon footprints in many of most impacted areas throughout the state."

In addition to the above mentioned CARB approvals, Workhorse also received a Certificate of Conformity ("CoC") from the EPA in March and a Federal Motor Vehicle Safety Standards ("FMVSS") Certification in June. Workhorse is the first medium duty BEV OEM to be certified by both the EPA and CARB.

About Workhorse Group Inc. 
Workhorse is a technology company focused on providing drone-integrated electric vehicles to the last-mile delivery sector. As an American original equipment manufacturer, we design and build high performance, battery-electric vehicles including trucks and aircraft. 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 includes forward-looking statements.  These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "believes," "expects," "anticipates," "estimates," "projects," "intends," "should," "seeks," "future," "continue," or the negative of such terms, or other comparable terminology. 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 herein.  Factors that could cause actual results to differ materially include, but are not limited to: our limited operations and need to expand in the near future to fulfill product orders; risks associated with obtaining orders and executing upon such orders; the ability to protect our intellectual property; the potential lack of market acceptance of our products; potential competition; our inability to retain key members of our management team; our inability to raise additional capital to fund our operations and business plan; our inability to satisfy covenants in our financing agreements; our inability to maintain our listing of our securities on the Nasdaq Capital Market; our inability to satisfy our customer warranty claims; our ability to continue as a going concern; our liquidity and other risks and uncertainties and other factors discussed from time to time in our filings with the Securities and Exchange Commission ("SEC"), including our annual report on Form 10-K filed with the SEC. Workhorse expressly disclaims any obligation to publicly update any forward-looking statements contained herein, whether as a result of new information, future events or otherwise, except as required by law.

Media Contact:

Mike Dektas
Creative Storm PR
513-266-3590
mike@creativestorm.com

Workhorse Investor Relations Contact:

Matt Glover and Tom Colton
Gateway Investor Relations
949-574-3860
WKHS@gatewayir.com

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SOURCE Workhorse Group Inc.

FAQ

What is the significance of the HVIP program for Workhorse (WKHS)?

The HVIP program allows Workhorse's C-Series trucks to qualify for monetary vouchers, significantly reducing purchase costs for customers in California.

How much funding can customers receive for Workhorse delivery trucks?

Customers can receive vouchers of up to $50,000 per vehicle for eligible Workhorse C-Series models.

What recent approvals has Workhorse received regarding its vehicles?

Workhorse received an Executive Order from CARB designating its trucks as zero-emission vehicles and has also obtained certifications from the EPA and for Federal Motor Vehicle Safety Standards.

When will the HVIP program accept new voucher requests again?

The HVIP program is expected to begin accepting new requests again in the fall of 2020.