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Workhorse (WKHS) Nabs Largest Order for C-Series Electric Vans
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Workhorse Group Inc. (WKHS - Free Report) recently announced that it has procured a purchase order of 6,320 C-Series all-electric delivery vehicles from Pride Group Enterprises. The order pertains to Workhorse’s C-1000 and C-650 models. Initial delivery of the vehicles to Pride will likely commence by July this year and span through 2026. The delivered vehicles will be distributed through Pride dealerships for commercial-fleet customers.
Pride is a leading Canadian and U.S.-based, privately-held company with diversified businesses in a variety of industries, including transportation, logistics, heavy-duty equipment dealerships, equipment leasing and rentals, real-estate holdings and hospitality.
It should be noted that Hitachi Capital America (“HCA”) will provide the inventory financing, i.e. the cash to purchase parts and tooling required for building the vehicles. This forms part of the strategic collaboration between Workhorse and HCA announced last August.
The Massive Order is a Win-Win for WKHS, Pride & HCA
For Workhorse, the new agreement with Pride marks the largest individual order till date. It will aid the company in strengthening its international sales channel by expanding into Canada for the first time.
Workhorse’s last-mile delivery trucks already have a solid fan base across North America. Moreover, the order provides the company with a first-mover advantage in the global market and displays augmented interest in its last-mile delivery vehicles. The order also solidifies the company’s ongoing partnership with HCA as it ramps up for scaled production in 2021.
Pride is enthusiastic to establish the new alliance, which enhances its product offerings by adding last-mile delivery vehicles to the company’s fleet. Apart from this, the latest order is crucial for the company in achieving its future target of 100% EVs. In fact, the company is continuously improving its infrastructure in order to provide public charging stations at all its locations, as well as EV services, warranty and parts across all major North America highways.
HCA is thrilled that it will leverage its smart manufacturing, data-driven digital solutions and EV technologies to Workhorse in an effort to aid the new EV fleet program.
Other Things to Note About WKHS
Workhorse is famous for its flagship C-Series electric van, which is a short-range electric vehicle designed for the so-called last-mile service, such as deliveries to homes and businesses. The company received the U.S. government’s thumbs-up to begin production of the van last year. In addition, the company is currently in the final phase of bidding for a contract worth $8.1 billion to manufacture its vans for the U.S. Postal Service (“USPS”).
Shares of the company have had an amazing run on the bourse, of late. Its shares have skyrocketed 618.9% in the past year compared with the broader industry’s appreciation of 14.3%.
Such meteoric gains have made the company’s valuation go out of hands with a P/S ratio of 21.06 versus the industry’s 0.99. However, the company’s current valuation seems unjustified due to the dismal earnings, highly leveraged balance sheet and weak financials.
Also, the biggest headwind for Workhorse is its lack of manufacturing capabilities and constant supply-chain constraints.
Apart from these, with auto bigwigs like General Motors (GM - Free Report) , Honda (HMC - Free Report) , Volkswagen (VWAGY - Free Report) , and others gearing up efforts to bank on the trending EV race, prospects are dim for Workhorse. It seems unlikely that the company will secure the long-awaited USPS contract.
Nonetheless, the latest order from Pride offers respite to Workhorse and provides some validation that its financial performance is not dependent on a potential USPS contract.
Workhorse currently carries a Zacks Rank of 4 (Sell).
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Workhorse (WKHS) Nabs Largest Order for C-Series Electric Vans
Workhorse Group Inc. (WKHS - Free Report) recently announced that it has procured a purchase order of 6,320 C-Series all-electric delivery vehicles from Pride Group Enterprises. The order pertains to Workhorse’s C-1000 and C-650 models. Initial delivery of the vehicles to Pride will likely commence by July this year and span through 2026. The delivered vehicles will be distributed through Pride dealerships for commercial-fleet customers.
Pride is a leading Canadian and U.S.-based, privately-held company with diversified businesses in a variety of industries, including transportation, logistics, heavy-duty equipment dealerships, equipment leasing and rentals, real-estate holdings and hospitality.
It should be noted that Hitachi Capital America (“HCA”) will provide the inventory financing, i.e. the cash to purchase parts and tooling required for building the vehicles. This forms part of the strategic collaboration between Workhorse and HCA announced last August.
The Massive Order is a Win-Win for WKHS, Pride & HCA
For Workhorse, the new agreement with Pride marks the largest individual order till date. It will aid the company in strengthening its international sales channel by expanding into Canada for the first time.
Workhorse’s last-mile delivery trucks already have a solid fan base across North America. Moreover, the order provides the company with a first-mover advantage in the global market and displays augmented interest in its last-mile delivery vehicles. The order also solidifies the company’s ongoing partnership with HCA as it ramps up for scaled production in 2021.
Pride is enthusiastic to establish the new alliance, which enhances its product offerings by adding last-mile delivery vehicles to the company’s fleet. Apart from this, the latest order is crucial for the company in achieving its future target of 100% EVs. In fact, the company is continuously improving its infrastructure in order to provide public charging stations at all its locations, as well as EV services, warranty and parts across all major North America highways.
HCA is thrilled that it will leverage its smart manufacturing, data-driven digital solutions and EV technologies to Workhorse in an effort to aid the new EV fleet program.
Other Things to Note About WKHS
Workhorse is famous for its flagship C-Series electric van, which is a short-range electric vehicle designed for the so-called last-mile service, such as deliveries to homes and businesses. The company received the U.S. government’s thumbs-up to begin production of the van last year. In addition, the company is currently in the final phase of bidding for a contract worth $8.1 billion to manufacture its vans for the U.S. Postal Service (“USPS”).
Shares of the company have had an amazing run on the bourse, of late. Its shares have skyrocketed 618.9% in the past year compared with the broader industry’s appreciation of 14.3%.
Such meteoric gains have made the company’s valuation go out of hands with a P/S ratio of 21.06 versus the industry’s 0.99. However, the company’s current valuation seems unjustified due to the dismal earnings, highly leveraged balance sheet and weak financials.
Also, the biggest headwind for Workhorse is its lack of manufacturing capabilities and constant supply-chain constraints.
Apart from these, with auto bigwigs like General Motors (GM - Free Report) , Honda (HMC - Free Report) , Volkswagen (VWAGY - Free Report) , and others gearing up efforts to bank on the trending EV race, prospects are dim for Workhorse. It seems unlikely that the company will secure the long-awaited USPS contract.
Nonetheless, the latest order from Pride offers respite to Workhorse and provides some validation that its financial performance is not dependent on a potential USPS contract.
Workhorse currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>