Tesla is gearing up to build an electric pickup truck and Workhorse is in the game, too. The Palo Alto-based electric car maker recently announced plans to build pickup trucks and heavy-duty haulers. Last month, the CEO of Tesla announced plans to create an electric pickup truck. Workhorse plans an entirely new design to compete with Tesla’s truck.
The Workhorse Group recently announced an agreement to partner with Ryder Systems to service and distribute Ryder trucks. The trucks that Workhorse sells under the partnership will likely become part of the rental fleet. The company lost $19.5 million in its fiscal year last year, despite sales of about $6 million. The stock closed at $2.15 on Tuesday, down from its all-time high of $28.
The W-15 model was announced in May 2017 and will begin production in late 2018. The company has secured pre-orders for several thousand Workhorse trucks. The starting price of the truck is $52,000, before incentives. US citizens can claim a $7,500 federal tax credit if they purchase the truck in the US. Workhorse plans to build 10,000 trucks in the first year.
Has Workhorse Sold Any Vehicles?
While Tesla’s electric pickup truck is at least two years away, Workhorse has made a good start in the field of plug-in electric trucks. The company’s CEO, Michael Wood, recently announced that the electric pickup truck will be available to consumers in about two years. That’s great news for consumers, but it’s not enough. If Workhorse doesn’t sell any vehicles soon, the company’s future is in doubt.
The company recently reported a net loss of $156.1 million in its fourth quarter, down from a profit of $280.5 million a year earlier. That’s the biggest loss in the company’s history, and it isn’t clear why it’s struggling so badly. The company sold off a 10% stake in Lordstown Motors Corp. and received a technology license for an electric pickup truck, but it didn’t have enough money to build it. Despite the setbacks, the company still managed to earn $201 million in cash equivalents as of December 31. The company has been struggling to make money for the last few years, and it’s now taking a hit.
The company has struggled to meet its production targets and has been accused of short-selling. The company’s latest failure to meet production targets fueled fears among short sellers. However, it was recently chosen as a finalist for a multi-billion dollar contract with the U.S. Postal Service, and the USPS has already tested prototypes of its electric truck. The company expects to award contracts early this year.
Is Workhorse a Selling Truck?
With the rising popularity of electric commercial trucks, the market for electric delivery vans is poised to grow. Last month, GM tried to secure a $500 million investment in Plymouth, Michigan-based start-up Rivian. Rivian has developed a pickup and SUV with a 400-mile-plus range. GM president Mary Barra has said the automaker will eventually develop an EV pickup of its own. But while Workhorse has yet to make a formal approach, its current supply chain does.
The Workhorse Group has also recently gotten some financing for its electric truck backlog. The company intends to use the money to cover general operating costs and backlog production for its electric delivery van. GM’s Lordstown Assembly plant is in northeast Ohio, and it will likely get a portion of the funding to manufacture the trucks there. It’s unclear who will buy the rest of the plant, however.
How Much Does a New UPS Truck Cost?
The initial cost of a trucking business is between $6,000 and $15,000, which includes the registration fees and formation documentation. The registration fees can be anywhere from $300 to $1,500. When choosing a truck, look for one with high fuel efficiency. The Isuzu N-Series is known for its fuel efficiency and dependability, making it an excellent choice for anyone looking for reliability and high performance.
When trucks reach the end of their lifespan, they may be roadworthy again but are structurally damaged. When this happens, they are disassembled and stripped of their reusable parts, which are then repainted with household paint to mask the brand mark. These vehicles are then either scrapped or used internally in UPS hubs. As a result, the trucks may be used more than once. A few trucks are recycled every year.
While the majority of trucks used by UPS are built on Ford or General Motors chassis, the modern ones are built on a specialized van chassis. They are powered by a combination of battery and electric power. The older models are built on P-chassis Ford or General Motors. The newer vehicles are built on Freightliner, Navistar, or Workhorse chassis. These trucks are also made of composite materials and weigh less than comparable vehicles.
Is Workhorse Owned by GM?
Despite its growing customer base, Workhorse is struggling to meet sales expectations. Its sales have been down since 2020, when it reached a high of $1.4 million. In 2020, it was still profitable, but in 2021, its profit fell to $0.9 million. This decline is largely the result of Workhorse’s decision to stop making C-1000 vehicles, which it said would not be able to meet demand.
In addition to the familiar W62 chassis, Workhorse also offers a new narrow-tracked version called W88. The company was involved in the development of Navistar’s eStar electric van, but this project stalled. In addition, the company has briefly offered a fully integrated chassis-body model called MetroStar, a low-floor bus chassis, and rear-engined recreational vehicles.
Earlier this year, the Detroit-based automaker approached GM with the idea of bringing its Lordstown assembly plant back to life. At the same time, the union wants GM to assign a specific product to the plant. Workhorse also wants to make the Lordstown plant a union shop. The news about the plant’s future is likely to stir up the political climate.
Does Workhorse Have a Future?
After a turbulent year, Workhorse announced the appointment of new CEO Richard Dauch. Earlier this year, the company announced a redesign of its C-Series trucks. Dauch took over as CEO on August 1st, succeeding Duane Hughes. The new CEO has vast experience in the automotive industry, having led Delphi Technologies through its merger with BorgWarner. Dauch’s background means he knows how to capitalize on market trends and motorist demand.
Analysts expect Workhorse stock to reach $6.75 by the end of 2022. Although these projections are based on fundamental analysis of the company’s business, they are not guarantees. Investors must consider their level of comfort with risk and the diversified nature of their investment portfolios when evaluating Workhorse stock. While it may not be the perfect stock for everyone, it is a good investment for long-term investors.
While the company may be in a position to take advantage of a retail-led short squeeze and a reversal of a contract award, it also faces a number of significant challenges ahead. Its revenue last year was only $377,000, meaning the company has a very long way to go. Investors may want to consider investing in Workhorse stock in the near future if it can make significant progress in this area.
Did Workhorse Get the USPS Contract?
After a seven-year search, the U.S. Postal Service is now ready to replace its fleet of aging delivery vehicles with EVs. There were three finalists for the contract, including Workhorse, the only company that could offer an all-electric delivery fleet. But after losing the bid to a company known for building military vehicles, the Wisconsin-based company sued the U.S. Postal Service for unfair business practices.
A few months ago, Workhorse Group filed a bid protest with the USPS, alleging that it was unfairly treated in the procurement process. However, the company has maintained that the USPS offered it $482 million to develop a concept vehicle. The company has also stated that it would review all contracts. Regardless of whether Workhorse won or lost, it’s clear that the USPS doesn’t trust Ohio companies with such a massive contract.
On Tuesday, Workhorse Group filed a lawsuit against the U.S. Postal Service over a $6 billion contract for its next-generation delivery vehicle. The USPS had previously offered the contract to rival Oshkosh Defense in February. Workhorse, which is an electric vehicle company, filed the protest four months after the USPS announced its decision. The lawsuit was dismissed after the U.S. Court of Federal Claims accepted the protest. The lawsuit cites the company’s intention to work with the government to develop future EVs.
How Many Orders Does Workhorse Have?
The number of orders that Workhorse has for electric trucks is impressive. In 2017, the company sold more than 10,000 trucks in the U.S. and it’s expected to sell at least 350,000 in the next few years. The company has a long history of trouble, but the recent Pride deal may have helped it get a much-needed boost. According to Workhorse, the company’s first commercial order was for 30,000 trucks.
The company’s biggest order was for 6320 C-Series electric delivery vans. They will be built by Workhorse in the US and Canada and are scheduled to arrive between July 2021 and June 2026. However, there are no plans to deliver all the vehicles in the US by that date. The company’s stock has fallen over 80% since February. If you’re looking for a way to make a decent profit from Workhorse, you should look into their financial reports and see whether they’re growing or failing.
The company is now ramping up production and is targeting five vehicles per day by March 2021. By 2022, Workhorse expects to produce 10 vehicles per day, and it hopes to build over 4,000 vehicles by 2022. If Workhorse is successful in delivering its production goals, its stock could reach $600 per vehicle. The company is still a ways from that, but it’s a start.
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