![]() The company failed to meet its production target last year of producing 300 to 400 C-Series vehicles in 2020, and it also decreased its 2021 production goal to only 1000 vans, down from initial estimates of 1800 vans. ![]() The biggest problem of Workhorse right now is that it's unable to scale its business. At the same time, it's also unlikely that its HorseFly drone project is going to enter a commercialization stage anytime soon as well since it could take years for the FAA to certify its drones. Currently, the company has very little presence in the electric vans niche and it doesn't have any major opportunities to expand its market share. Due to this, the company's stock has significantly underperformed against the S&P 500 index since the beginning of the year, and it's unlikely that the performance will improve anytime soon.Īfter failing to win a $6 billion USPS contract, we don't see any catalysts for growth that could improve Workhorse's financials. Despite being so long in the business, the company hasn't made major progress in the last years, as its business is barely generating any revenues, while the cash burn doesn't stop. Prepare To Be Disappointedįounded in 2007, Workhorse manufactures electric vans for big commercial clients. For that reason, we stick with our opinion that it's not worth buying Workhorse's shares at this stage, as there are better opportunities in the EV sector on the market right now. After reporting poor Q1 results, there's also a risk that the company will once again fail to meet its production goal for this year, and as a result, there's a risk that its stock will continue to depreciate. Workhorse's ( NASDAQ: WKHS) inability to scale its operations will prevent it from improving its financials and overall performance.
0 Comments
Leave a Reply. |