Workhorse Gets Final Safety Nod To Begin Electric Van Ramp-Up

Workhorse Group Inc. WKHS can begin ramping up production of its composite-body electric delivery van now that it has met federal safety standards.

Production of the C-Series 1,000- and 650-cubic-foot vans is trickling through assembly at Workhorse's plant in Union City, Indiana. Workhorse has about 1,100 orders pending with United Parcel Service UPS and others. It expects to build 300-400 trucks this year absent supply chain issues.

Workhorse successfully completed Federal Motor Vehicle Safety Standards (FMVSS) testing for its C650 and C1000. The tests had been delayed by complications related to the COVID-19 pandemic. 

"With this late-stage milestone certification now behind us, we remain well-positioned to execute on our production timeline for the remainder of the year," CEO Duane Hughes said in a statement.

Shares Surging

Separately, Workhorse's share price continued surging Tuesday, closing up 18.24% at $7. Shares traded at $2.46 on June 2.

The stock of the Loveland, Ohio-based company, which designs and builds electric vehicles and truck-mounted delivery drones, trades at "a significant discount to our estimate of its intrinsic value," Formidable Asset Management LLC said in a June 19 research note.

The stock is undervalued "despite its presence in this attractive niche, valuable intellectual property, and potentially transformative strategic partnerships," Formidable CEO Will Brown and Chief Investment Officer Adam Eagleston wrote.

Formidable said Workhorse's 10% stake in electric pickup maker Lordstown Motors Corp. (LMC) could be worth over $1 billion. Workhorse licensed intellectual property for its W-15 electric pickup to LMC, a startup led by former Workhorse CEO Steve Burns.

LMC purchased the former General Motors Lordstown Assembly complex from the automaker in November and will reveal its Endurance commercial fleet-focused electric pickup on Thursday. Vice President Mike Pence is scheduled to attend the reveal.

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