![]() ![]() ![]() Irrespective of where the stock's price may move in 2022, the company's fundamentals and long-term prospects don't look very bright as of now.ġ0 stocks we like better than Workhorse Group There is no announced model in production right now, and we don't know if any future model will be able to meet the required safety and regulatory standards.Įven though Workhorse stock's price looks attractive, it seems best to avoid this stock right now. However, intense competition in the electric commercial vehicles segment may restrict Workhorse's growth. Workhorse's management is trying to drive the company in the right direction. In short, Workhorse's delay and its past troubles might have already killed its chances of success in this competitive market. Rivian and Stellantis are among other companies that are already ahead of Workhorse in the electric commercial vans race. Meanwhile, Ford's (NYSE: F) E-Transit van got record reservations, even before the start of its production. General Motors' (NYSE: GM) BrightDrop already delivered its first electric delivery vans to FedEx in December. Competition in the segment is already heating up. On the flip side, Workhorse doesn't expect to have something in the market before 2023. There is a robust demand for electric commercial vehicles, and it is expected to remain that way in the coming several years. Second, Workhorse operates in a market segment that is underserved right now. He plans to announce the company's future models and production roadmap in the first quarter this year. He is trying to overhaul the company's operations and is working with all the stakeholders in a systematic manner. First, the company's new CEO, Rick Dauch, has more than 25 years of auto sector experience. Two things can work in Workhorse's favor. Workhorse stock's steep fall last year reflects the above concerns. The company expects that these potential models may come to market in 2023. It does not have any model in production right now and will announce its plans for new models in the first quarter of this year. The company has suspended further deliveries of this model. Moreover, it recalled all 41 of its C1000 delivery vans due to the model being not compliant with Federal Motor Vehicle Safety Standards. Workhorse lost a potential order from the U.S. ![]() In the years 20, the company delivered some of these trucks, but it fell well short of its delivery targets. In 2017, Workhorse announced its plan to develop C-series electric delivery trucks. This gets reflected in the company's quarterly revenue as well as its stock's price in the chart above. That number remained unchanged in 2019, when Workhorse didn't deliver any trucks. By the end of 2018, the company had delivered around 360 such trucks. The company started selling electric and range-extended medium-duty trucks. AMP changed its name to Workhorse Group in 2015. Workhorse's history can be traced back to 2013, when AMP Electric Vehicles acquired Workhorse brand and its assembly plant in Union City, California. What's more, Workhorse isn't new to these challenges. Postal Service, a change in management, issues with delivered vehicles resulting in a recall - the list of Workhorse's troubles is long. Falling behind on its delivery plans, losing a key order from the U.S. Workhorse is surely facing several challenges. ![]() Let's discuss how the company, and its stock, may fare in 2022 and beyond. ![]()
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