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CINCINNATI - Workhorse Group Inc. (NASDAQ:WKHS), an American technology company currently trading near its 52-week low at $1.16 with a market capitalization of $5.95 million, completed a significant test of its electric step van, driving 2,400 miles from Cincinnati, Ohio, to Anaheim, California. According to InvestingPro analysis, the stock appears undervalued at current levels, though investors should note the company’s significant debt burden. The journey, which spanned nine states and utilized multiple charging networks, culminated in the vehicle’s availability for test drives at the Advanced Clean Transportation (ACT) Expo, North America’s premier advanced vehicle technology event starting today.
The W56 electric step van showcased its real-world capability, maintaining consistent performance across diverse weather conditions and terrains. Notably, the vehicle achieved 27 miles per gallon of gasoline-equivalent (MPGe) at highway speeds, nearly tripling the efficiency of comparable internal combustion engine (ICE) step vans. With analysts projecting 51% revenue growth for the upcoming year, this successful demonstration could help support the company’s expansion plans. InvestingPro subscribers can access 20+ additional insights about Workhorse’s financial health and growth prospects. Additionally, the W56 reported 53 percent lower fuel costs and 40 percent lower scheduled maintenance costs over five years compared to ICE counterparts, presenting a compelling case for its total cost of ownership benefits.
Ryan Gaul, President of Commercial Vehicles at Workhorse, emphasized the vehicle’s reliability, stating, "This cross-country drive proves that medium-duty EV adoption doesn’t require compromising operational reliability." The company released a video highlighting the journey, including charging in remote areas and navigating difficult terrains, to demonstrate the practicality of EVs for commercial use.
The "We Drove It Here" campaign, which began in October 2024, aims to prove the readiness of Workhorse’s vehicles for commercial deployment. The W56 and its extended wheelbase model have undergone various real-world tests, reinforcing the message that Workhorse trucks are built for driving, not just for show.
At the ACT Expo, attendees can test drive the W56 and view the 100% electric W4 CC utility vehicle, also available for demonstration. Kingsburg Truck Center, a certified Workhorse dealer, drove the W4 CC from central California to the event. The dealer recently secured a contract to supply electric work trucks to California government entities, highlighting the vehicle’s compliance with regulatory requirements.
The Workhorse W56 is designed for last-mile delivery, offering up to 150 miles of range and cargo capacities of 1,000 or 1,200 cubic feet. The W4 CC electric cab chassis provides a versatile platform for various vocational fleet applications. Both vehicles are approved for sale in Canada and meet federal and state incentive program qualifications, promising immediate operational cost reductions for fleet managers. With current revenue of $6.62 million and a beta of 2.99 indicating high market sensitivity, investors can access comprehensive analysis and detailed financial metrics through InvestingPro’s exclusive research reports, available for over 1,400 US stocks.
This news is based on a press release statement from Workhorse Group Inc.
In other recent news, Workhorse Group Inc. reported a significant decrease in sales for 2024, with revenue dropping to $6.6 million from $13.1 million in the previous year. Despite the decline in sales, the company managed to reduce its net loss to $101.8 million, an improvement from the $123.9 million loss in 2023. Workhorse has implemented substantial cost-cutting measures, including staff reductions and leadership pay cuts, to extend its financial runway. The company aims to secure more commercial electric vehicle orders and is focusing on expanding its product lineup, with the upcoming launch of the reduced range 140kW W56 model. In a strategic move, Workhorse executed a 1-for-12.5 reverse stock split, which helped it regain compliance with Nasdaq’s minimum bid price requirement. This action was crucial in maintaining its listing status and providing a broader range of options for investors. The company is also actively pursuing national fleet and government procurement contracts, though it has not provided specific revenue guidance due to market uncertainties.
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