Workhorse Highlights Achievements in 2023 Year-End Letter to Shareholders
December 21 2023 - 8:30AM
Workhorse Group Inc. (Nasdaq:
WKHS) (“Workhorse” or “the
Company”), an American technology company focused on
pioneering the transition to zero emission commercial vehicles,
today issued a letter to its shareholders highlighting the
important milestones the Company has reached throughout 2023 and
opportunities ahead to enhance shareholder value and advance
Workhorse’s mission.
Dear Workhorse Shareholders,
I would first like to take a moment
to say thank you for your ongoing engagement, patience and feedback
throughout 2023. As we head toward year end, I wanted to reflect on
the year and provide an update on recent achievements and the
opportunities ahead.
We don’t expect the transition to
commercial EV powered vehicles to occur overnight. It will likely
take years or even decades to happen. The path to commercial
vehicle production, especially within the electric vehicle space,
has experienced a number of ups and downs and we’ve certainly faced
our fair share of each this year. I am proud of our team’s
resiliency and how quickly we addressed our challenges. We resolved
unforeseen production and supply issues affecting the W4 CC and
W750. We also resolved the CARB HVIP voucher matter in California
this past quarter. Lastly, we strengthened our financial position
and resolved legacy liabilities.
After this hard work, we are ending
the year with important momentum. We have final vehicle assembly up
and running for four new product lines, the W4CC cab chassis, the
W750, and the W56 stripped chassis and step van. We continue to
expand our regional dealer network with a focus on those regions
where CARB Clean Fleet and Clean Truck mandates will be adopted in
2024-27. We have selectively resized our team here at Workhorse
while maintaining the necessary resources and skills on the team to
continue to design, test and build world class commercial trucks.
The overhaul of our Union City, IN manufacturing complex is nearing
completion and the “Workhorse Ranch” is now capable of building
& painting up to 6000 vehicles/year on one shift. We can ramp
up staffing and production in-line with market demand.
In the last couple of weeks alone, we
have made real progress, including:
- Receiving our first fleet purchase order for W56 step-vans in
California;
- Stabilizing W750 step van production at 4 units/week and
deploying 3 additional units to FedEx Ground routes in OH and
CA;
- Using several W4CC vehicles with multiple back-end
configurations to perform demos with potential customers interested
in a range of packages including reefers, flatbeds, utility truck
and cargo box packages;
- Completing the final FMVSS certification of the W56, enabling
us to ship completed units to dealers;
- Receiving approval for all of our CL4-6 products under the New
York Truck Voucher Incentive Program (NYTVIP) with voucher amounts
ranging from $100,000 - $125,000 for eligible vehicles.
- Advancing our Aero business, including selling our drones and
continuing to add additional governmental grants, while evaluating
a range of alternatives to capture new growth opportunities for
this business;
- Continuing to successfully deliver last mile packages for
FedEx, while organically gaining new route assignments as we
electrify the fleet in our Stables initiative;
- Implementing new back-office IT/Operating systems across
product development, supply chain, manufacturing, quality, HRM and
Finance/Accounting operations, and
- Entering into agreements for up to $40 million in green
convertible notes and a $50 million forward purchase contract
facility.
As we look to 2024, we are focused on
operational execution and delivery of our high-performance
battery-electric trucks and drones to customers. With the strong
technical, operating and commercial foundations we now have in
place, we have the opportunity to succeed in the market and deliver
value to our shareholders. Our transition over the past two years
from being a ‘challenged’ EV start-up into a viable OEM is on track
from a product, process capability and support systems standpoint.
Now we must turn our potential into results by earning meaningful
new business with those customers that are committed to
electrifying their fleets. We believe we are well prepared to meet
the needs of our customers as EV adoption increases.
Thank you for your continued support,
and wishing you and your families all the best as we head into
2024.
Sincerely,Rick Dauch, CEO
About Workhorse Group Inc.Workhorse is a
technology company focused on providing drone-integrated electric
vehicles to the last-mile delivery sector. As an American original
equipment manufacturer, we are focused on designing and building
high performance, battery-electric vehicles including trucks and
aircraft. Workhorse also develops cloud-based, real-time telematics
performance monitoring systems that are fully integrated with our
vehicles and enable fleet operators to optimize energy and route
efficiency. All Workhorse vehicles are designed to make the
movement of people and goods more efficient and less harmful to the
environment. For additional information,
visit workhorse.com.
Forward-Looking Statements This press release
contains forward-looking statements reflecting our current
expectations that involve risks and uncertainties. These statements
are made under the “safe harbor” provisions of the U.S. Private
Securities Litigation Reform Act of 1995. When used in this
release, the words “anticipate,” “expect,” “plan,” “believe,”
“seek,” “estimate” and similar expressions are intended to identify
forward-looking statements. These are statements that relate to
future periods and include, but are not limited to, statements
about the features, benefits and performance of our products, our
ability to introduce new product offerings and increase revenue
from existing products, expected expenses including those related
to selling and marketing, product development and general and
administrative, our beliefs regarding the health and growth of the
market for our products, anticipated increase in our customer base,
expansion of our products functionalities, expected revenue levels
and sources of revenue, expected impact, if any, of legal
proceedings, the adequacy of our liquidity and capital resources,
expected growth in business and our ability to execute on the
strategies discussed above. Forward-looking statements are
statements that are not historical facts. Such forward-looking
statements are subject to risks and uncertainties, which could
cause actual results to differ materially from the forward-looking
statements contained in this release. Factors that could cause
actual results to differ materially include, but are not limited
to: our ability to develop and manufacture our new product
portfolio, including the W4 CC, W750, W56 and WNext programs; our
ability to attract and retain customers for our existing and new
products; risks associated with obtaining orders and executing upon
such orders; the unavailability, reduction, elimination,
termination or adverse application of government subsidies,
incentives and/or regulations, including the Advanced Clean Fleet
Regulation adopted by the California Air Resource Board; supply
chain disruptions, including constraints on steel, semiconductors
and other material inputs and resulting cost increases impacting
our company, our customers, our suppliers or the industry; our
ability to capitalize on opportunities to deliver products to meet
customer requirements; our limited operations and need to expand
and enhance elements of our production process to fulfill product
orders; our inability to raise additional capital to fund our
operations and business plan; our ability to regain compliance with
the listing requirements of the Nasdaq Capital Market and otherwise
maintain the listing of our securities thereon; our ability to
protect our intellectual property; market acceptance for our
products; our ability to obtain sufficient liquidity from
operations and financing activities to continue as a going concern,
including the financing agreements discussed above, and, our
ability to control our expenses; potential competition, including
without limitation shifts in technology; volatility in and
deterioration of national and international capital markets and
economic conditions; global and local business conditions; acts of
war (including without limitation the conflicts in Ukraine and
Israel) and/or terrorism; the prices being charged by our
competitors; our inability to retain key members of our management
team; our inability to satisfy our customer warranty claims; the
outcome of any regulatory or legal proceedings; our ability to
execute on the strategies discussed above; and other risks and
uncertainties and other factors discussed from time to time in our
filings with the Securities and Exchange Commission (“SEC”),
including under the “Risk Factors” section of our annual report on
Form 10-K and our quarterly reports on Form 10-Q, each as filed
with the SEC. Forward-looking statements speak only as of the date
hereof. We expressly disclaim any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in our
expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is based,
except as required by law.
Media Contact:Aaron Palash / Greg KlassenJoele
Frank, Wilkinson Brimmer Katcher212-355-4449
Investor Relations Contact:Matt Glover and Tom
ColtonGateway Investor
Relations949-574-3860WKHS@gateway-grp.com
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