By Dhirendra Tripathi
Investing.com – Workhorse stock (NASDAQ:WKHS) plunged about 14% Wednesday to touch year’s low of $7.05 as the company suspended deliveries of its C-100 electric vans, citing the need for more tests and modifications to comply with regulatory standards.
The company said it is also recalling the 41 units it had delivered earlier even though it has not received any report of safety issues related to this matter.
Workhorse said it has concluded that modifications are necessary to certify the C-1000 vehicles under Federal Motor Vehicle Safety Standards. The company said it has informed the National Highway Traffic Safety Administration regarding the need for additional testing and vehicle modifications.
The company expects to complete the testing of the van in the December quarter. The vehicle has a range of 100 miles and is powered by a 70-kilowatt-hour battery.
Accordingly, the company’s previous statements related to the vehicle’s compliance with NHTSA standards cannot be relied upon, it said.