1/31/2024 0 Comments Workhorse stock redditWorkhorse’s C-Series last mile delivery vans are the focal point of investors right now. Loss of Essential USPS Contract Still Weighing on WKHS Stock Given the recent massive earnings miss, it’s likely investors have lost some faith in the company in this regard. Investors betting on WKHS stock are making an implicit bet on the company’s management team's ability to hit its pre-ordained targets. Additionally, supplies of key components were constrained this past quarter, and limited production capacity appears to be creating bottlenecks for the company.Īs an early-stage EV maker in a relatively niche segment of this market, Workhorse remains a highly speculative play. The company blamed these dismal production numbers on ensuring quality was top-notch for its first few vehicles. However, investors were certainly pricing in a lot more in terms of deliveries with this stock. Sure, this number was up more than 600% over last year’s $84,000 revenue number. Total revenue for this EV maker with a $1.6 billion market capitalization came in at only $521,000. Given the first quarter delivery numbers of only six trucks and 38 C-series vehicles (last mile delivery vans), it appears investors and the broader market have become concerned that even these targets may be unrealistic. However, during the company’s recent Q1 earnings report, it was announced that Workhorse would be reducing its year-end target to only 1,000 units. The company had initially targeted production of 1,800 units in 2021, given relatively strong preorder demand for approximately 8,000 of its vehicles. This year was supposed to be the year Workhorse took off, from a production standpoint. Slower Production Outlook Bearish for Workhorse Investors Let’s dive into what’s been driving shares of this EV maker on such a volatile ride recently.
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