Workhorse Discontinues C1000 Program, Escapes SEC Probe Without Enforcement Action

Workhorse Group Inc WKHS said it is discontinuing the C1000 electric cargo van program, effective immediately, as it focuses its resources on advancing its product roadmap for the W4 CC, W750, and W56 vehicles.
The company made the decision as it thought the increasing time, cost, and resources being devoted to the C1000 would be better allocated to developing and producing its other vehicles and products.
As a result, Workhorse expects to record a non-cash inventory write-off of approximately $10 million plus disposal costs.
SEC Probe: The company said the U.S. Securities and Exchange Commission (SEC) had ended its previously disclosed investigation of the company without any enforcement action.
Also, the W4 CC vehicles that were previously delayed in ports are now beginning to be shipped to Workhorse facilities.
Outlook: Workhorse reaffirmed its revised guidance for FY22 with revenue of $5 million - $15 million and manufacturing and delivering approximately 25-100 vehicles.
The company also continues to expect to generate significant revenue growth in 2023, as it ramps up production of its products.
"We are pleased to conclude 2022 with legacy issues behind us and are looking ahead to 2023 fully focused on executing our commercial vehicle product roadmaps and advancing our Aero and Stables & Stalls businesses," said CEO Rick Dauch.
Price Action: WKHS shares are trading lower by 2.02% at $1.45 on the last check Wednesday.
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