S&P 500   5,079.35 (+0.19%)
DOW   38,912.18 (-0.09%)
QQQ   437.05 (+0.41%)
AAPL   179.78 (-0.90%)
MSFT   408.12 (+0.10%)
META   486.48 (+0.51%)
GOOGL   136.92 (+0.40%)
AMZN   174.80 (+0.95%)
TSLA   199.78 (-1.12%)
NVDA   789.24 (+1.62%)
NIO   5.65 (+4.05%)
AMD   188.59 (+6.83%)
BABA   74.09 (-0.67%)
T   16.97 (+0.06%)
F   12.38 (+0.65%)
MU   89.45 (-0.29%)
CGC   3.29 (-2.08%)
GE   155.71 (+0.06%)
DIS   111.54 (+0.67%)
AMC   4.30 (-13.83%)
PFE   26.74 (-1.11%)
PYPL   60.21 (-0.07%)
XOM   104.66 (+0.33%)
S&P 500   5,079.35 (+0.19%)
DOW   38,912.18 (-0.09%)
QQQ   437.05 (+0.41%)
AAPL   179.78 (-0.90%)
MSFT   408.12 (+0.10%)
META   486.48 (+0.51%)
GOOGL   136.92 (+0.40%)
AMZN   174.80 (+0.95%)
TSLA   199.78 (-1.12%)
NVDA   789.24 (+1.62%)
NIO   5.65 (+4.05%)
AMD   188.59 (+6.83%)
BABA   74.09 (-0.67%)
T   16.97 (+0.06%)
F   12.38 (+0.65%)
MU   89.45 (-0.29%)
CGC   3.29 (-2.08%)
GE   155.71 (+0.06%)
DIS   111.54 (+0.67%)
AMC   4.30 (-13.83%)
PFE   26.74 (-1.11%)
PYPL   60.21 (-0.07%)
XOM   104.66 (+0.33%)
S&P 500   5,079.35 (+0.19%)
DOW   38,912.18 (-0.09%)
QQQ   437.05 (+0.41%)
AAPL   179.78 (-0.90%)
MSFT   408.12 (+0.10%)
META   486.48 (+0.51%)
GOOGL   136.92 (+0.40%)
AMZN   174.80 (+0.95%)
TSLA   199.78 (-1.12%)
NVDA   789.24 (+1.62%)
NIO   5.65 (+4.05%)
AMD   188.59 (+6.83%)
BABA   74.09 (-0.67%)
T   16.97 (+0.06%)
F   12.38 (+0.65%)
MU   89.45 (-0.29%)
CGC   3.29 (-2.08%)
GE   155.71 (+0.06%)
DIS   111.54 (+0.67%)
AMC   4.30 (-13.83%)
PFE   26.74 (-1.11%)
PYPL   60.21 (-0.07%)
XOM   104.66 (+0.33%)
S&P 500   5,079.35 (+0.19%)
DOW   38,912.18 (-0.09%)
QQQ   437.05 (+0.41%)
AAPL   179.78 (-0.90%)
MSFT   408.12 (+0.10%)
META   486.48 (+0.51%)
GOOGL   136.92 (+0.40%)
AMZN   174.80 (+0.95%)
TSLA   199.78 (-1.12%)
NVDA   789.24 (+1.62%)
NIO   5.65 (+4.05%)
AMD   188.59 (+6.83%)
BABA   74.09 (-0.67%)
T   16.97 (+0.06%)
F   12.38 (+0.65%)
MU   89.45 (-0.29%)
CGC   3.29 (-2.08%)
GE   155.71 (+0.06%)
DIS   111.54 (+0.67%)
AMC   4.30 (-13.83%)
PFE   26.74 (-1.11%)
PYPL   60.21 (-0.07%)
XOM   104.66 (+0.33%)

Workhorse Group: Consider Getting Back on the Horse 

Workhorse Group stock price and website

Key Points

  • Workhorse Group Inc. had a tepid quarter, but production is back on track and ramping. 
  • The company reaffirmed the year's guidance and expects to generate at least $75 million. 
  • Cash burn is under control and positive cash flow may be reached in the next few quarters. 
  • 5 stocks we like better than Workhorse Group

One lesson of investing is if you get washed out of a position, it’s time to rethink the position, not abandon it entirely, and that is the case with Workhorse Group Inc. NASDAQ: WKHS. The initial thesis didn’t pan out; the company recalled its first fleet of electric vehicles and threw them away, but it is back on its feet.

After more than a year of struggle and efforts to get back on track, the company delivers vans and ramped up production. The first quarter results were a bit tepid due to unsurprising component delays but production targets were maintained. Revenue is back on the books. This means for investors that, after three years of waiting, this EV startup is producing cars, which is the catalyst for Workhorse stock prices the market has wanted

Workhorse Group Delivers 10 Vehicles 

Workhorse Group did not have a robust quarter delivering 10 vehicles, but it is a start and should lead to better results in the current quarter. The deliveries brought in only $1.7 million in revenue. The company expects to ramp deliveries as soon as the current quarter and bring in at least $75 million in revenue for the year. This is below the $90 million consensus figure, but the range provided ample room for outperformance, and the analysts aren’t exactly up to date with their estimates.  

The best news in the report is the production and cash burn update. The company produced a loss for the quarter due to the shortfall in deliveries, but the $25 million is far less than analysts expected. The company was able to control spending and appears to be on track for positive cash flow, if not profitability. The company has only $79 million in cash on the books, which may not be enough to see it past that milestone. At the current pace of use, it will be gone before next spring, assuming no unseen expenses occur as production ramps for other models. 

The production update is favorable and includes ramping production for the W4 chassis-cab combination and the onset of production for the W-750 class four delivery van. The W4 CC is in regular production, while the pilot models for the W-750 are expected to roll off the line at any time. The W56 is expected to go into production in the third quarter. 


Workhorse Group Diversification in Play

Workhorse Group is a diversification play in EV that includes fleet management and drones. Fleet management includes operating and managing EV fleets, while drones are intended to enhance delivery capabilities. The drones deliver packages from a delivery vehicle positioned centrally within a neighborhood or urban area. The drones increase efficiency because the operator can make multiple deliveries without leaving the vehicle. The drones are also being shown to the military and government agencies for applications in those venues. 

The chart isn’t promising. The stock is in a clear downtrend and has not shown true support. The post-release action has the market at the lowest levels since the IPO, but this may be as low as it gets. The action is without strength, and the indicators show extreme oversold conditions. At best, a relief rally might be expected now; the opportunity is that price action will rebound smartly later in the year when deliveries and cash flow begin to improve. Stocks like Rivian Automotive Inc. NASDAQ: RIVN,  Lucid Group Inc. NASDAQ: LCID and Fisker Inc. NYSE: FSR are in similar positions regarding production, and their stocks have begun to bottom

Workhorse Group stock chart on MarketBeat

→ Hunting for Domestic Vanadium - The U.S. Govt. Did WHAT? (From Edge On The Street) (Ad)

Should you invest $1,000 in Workhorse Group right now?

Before you consider Workhorse Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Workhorse Group wasn't on the list.

While Workhorse Group currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The Next 7 Blockbuster Stocks for Growth Investors Cover

Wondering what the next stocks will be that hit it big, with solid fundamentals? Click the link below to learn more about how your portfolio could bloom.

Get This Free Report

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Fisker (FSR)
3.0313 of 5 stars
$0.75+1.7%N/A-0.52Reduce$3.89
Lucid Group (LCID)
1.0727 of 5 stars
$3.21-0.6%N/A-2.29Reduce$4.90
Rivian Automotive (RIVN)
2.9519 of 5 stars
$11.02-2.5%N/A-1.92Hold$20.73
Workhorse Group (WKHS)
1.4411 of 5 stars
$0.33-2.2%N/A-0.50Hold$1.83
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


Featured Articles and Offers

The Tesla Earnings Story That's NOT Being Told

The Tesla Earnings Story That's NOT Being Told

If the last year of price cuts and sluggish sales weren’t enough to tip off the market to the fact the EV bubble has burst, Tesla’s NASDAQ: TSLA Q4 results and outlook for 2024 should do it.

Search Headlines: