Workhorse Group cut its revenue and delivery guidance for 2022 on Tuesday, saying that it may not be able to deliver as many of its electric commercial vehicles as planned because of ongoing supply-chain issues.
Workhorse said that it now expects to deliver between 150 and 250 of its vehicles for the year, generating between $15 million and $25 million in revenue. It had said in May that it expected to deliver “at least 250” vehicles this year, generating “at least $25 million” in revenue.
Workhorse’s shares dropped sharply after the news was released. The stock ended the day at $3.39, down about 24%.
Workhorse announced the guidance changes as part of its second-quarter earnings release. Here are the key numbers.
- Revenue: $12,555 for the quarter, down from $1.2 million in the year-ago period.
- Net loss: $21.2 million, versus $43.6 million in the year-ago period.
Workhorse is in the process of transitioning to a new product lineup, to be built on electric-truck chassis supplied by GreenPower Motor. The company said it received its first shipment of chassis from GreenPower in July and is on track to begin production of its GreenPower-based chassis-cab vehicles by the end of September, with delivery vans following before the end of 2022.
Workhorse is using GreenPower’s chassis while it works to develop two new electric-truck platforms of its own. The first of those, called W56, is still on track to enter production in the third quarter of 2023, the company confirmed on Tuesday, with about 75% of materials already sourced.