The electric vehicle maker Workhorse announced Tuesday its second quarter financial results reporting $140.1 million in cash and equivalents on hand as of the end of Q2 2022 and no debt on the balance sheet due to deleveraging exchange transactions.
Workhorse now expects to manufacture and sell between 150-250 vehicles and generate between $15-25 million in revenue in 2022.
Furthermore, the company reported a 2022 Capex of 15 – $25 million after revising plans slightly downward for facility upgrades, primarily at Union City, IN due to timing and more efficient use of AGV’s and LEAN manufacturing.
“Our critical strategic initiatives remain on time and on budget,” said Workhorse CEO Rick Dauch. “The recent actions we’ve taken include building out our leadership team; transforming our manufacturing operations; establishing strategic relationships with industry-leading suppliers; and executing on our product roadmaps for both Commercial and Aerospace vehicles. We secured a new purchase agreement for our C1000, W4 CC and W750 products, which includes over 1,000 build slot reservations in 2022 and 2023. We remain confident in the solid foundation we are putting in place to deliver electric vehicles that our customers want and need.”
Workhorse said it remains “on track to execute its revised strategic product roadmap” across all four of its EV platforms during the quarter:
Revised C1000 front suspension design is complete; due care FMVSS testing is expected to be completed and production to begin in Q3 2022. Workhorse remains on track to return vehicles to service and repair all previously manufactured vehicles produced to date by year’s end. The Company also plans to manufacture 50 to 75 additional C1000’s by year’s end from inventory on hand.
The Company’s Class 4 delivery vehicles are generating significant interest from customers in demonstrations across the country. Workhorse received the first shipment of Green Power chassis in July and will be in production on the W4 CC in Q3 2022 and the W750 step van in Q4 2022.
Workhorse continues to execute on its plan for the W56 platform with the start of regular production still planned for Q3 2023. This approach provides the Company with the shortest path to full BEV platform production, leverages existing Workhorse designs and will have various wheelbase options with a common parts bin. The Company continues to make key supplier decisions and has chosen suppliers for the eAxle and batteries. As a result, about 75% of the materials for the vehicle are sourced and committed. Design confirmation build was completed in the new Wixom, Michigan technology center in July. Final design and testing protocols for the W56 will be completed by Q2 2023.
The Company is combining its Class 3 and Class 4 segment experience generated by the E-Gen and the C1000 programs with new technology to develop the W34 platform. Features of the W34 will include the Accessible Low Floor Platform with improved ride and handling, efficient lightweight systems, and advanced technology. With production beginning in late 2024, the W34 will be coming to market just as the industry’s tailwinds arrive.
CEO Rick Dauch added: “By the end of 2024 we will have a full family of safe, reliable, and affordable CL3-6 EVs, built in the heartland of our country, to meet the demanding and diverse needs of the commercial work truck and delivery van markets here in North America.”
Recently, the company said it expects at least 40 percent of the Next Generation Delivery Vehicles (NGDVs) and commercial off-the-shelf (COTS) vehicles covered by the SEIS to be pure EVs. The decision follows the $107 billion financial overhaul decision by the Senate allowing the company to invest in efficient service.