Electric vehicle startup Workhorse said on Monday it is in discussions with a privately held U.S.-based manufacturer of electric commercial vehicles over a potential transaction.
Shares of the troubled Ohio-based firm have surged 337.6% over the past month but remain down 49% year to date.
The stock plunged 21% on Monday’s pre-market trading session and are currently trading at $3.57.
Workhorse said the potential deal would involve a merger of the private manufacturer into a newly created subsidiary of Workhorse, in exchange for newly issued shares.
Although the number of shares has not yet been determined, the company expects the transaction would result in the manufacturer’s existing investors owning a “substantial majority” of the combined entity’s common stock.
“The Company has entered into these discussions after exploring and considering a number of available alternatives with its investment banks and other advisors,” Workhorse said in a statement.
The company added that it intends to maintain its Nasdaq listing following the completion of any potential transaction. Final terms have not yet been agreed.
To avoid delisting after the stock fell below Nasdaq’s $1 minimum bid threshold, Workhorse executed a 1-for-12.5 reverse stock split in March — its second in less than a year — following a 1-for-20 reverse split in June 2024.
The company regained compliance with Nasdaq listing rules in April.
Its portfolio includes the W56 medium-duty truck — offered as a step van or stripped chassis — the W750 Class 4 delivery van, and the Q4 CC cab chassis.
Earlier this year, Workhorse secured regulatory approval to sell the W56 and W750 models in Canada, with fleet demonstration testing launched in spring.
As of March 31, Workhorse held $30.6 million in cash and restricted cash, but its convertible note liabilities ballooned to $45.2 million, up sharply from $10.5 million at the end of 2024. It reported an operating loss of $12.8 million for the quarter.
Total operating expenses fell to $8.3 million — down from $17.6 million in the same period a year earlier — driven by significant cuts to headcount, consulting, legal, IT, and R&D costs. Capital expenditures in the quarter were just $118,000.
Workhorse said its near-term priorities include fulfilling existing customer orders, winning new purchase commitments — including a second 2025 FedEx purchase order — and completing testing of a 140 kWh battery variant for the W56.
