EV Roundup: RIDE Files for Bankruptcy, WKHS Hits Milestones & More
Recently, electric vehicle (EV) behemoth Tesla TSLA received considerable attention for its North America Charging Standard (NACS). With automotive giants like Ford and General Motors embracing Tesla's NACS connectors, the Society of Automotive Engineers (SAE) made an announcement last week, declaring that Tesla's NACS will become a standard connector in the country. The move is expected to promote the adoption of Tesla's charging technology across the automotive industry.The adoption by SAE will make the implementation of ports easier for charging station manufacturers and operators. It will also make the process of charging more consistent and reliable for EV owners.
Last week, Volkswagen’s VWAGY EV charging subsidiary, Electrify America, announced plans to add Tesla's NACS connectors to Electrify America and Electrify Canada's fast-charging stations by 2025. Noted EV charging company, Blink Charging Co. BLNK is expanding the accessibility to its charging network through the incorporation of the NACS and Combined Charging System (CCS).
Electric delivery truck maker Workhorse Group Inc. WKHS initiated the production of W750 vans in its Union City manufacturing plant and signed a deal with Smyrna Truck to expand its network. Amid tell-tale signs that most EV startups are facing a tough time, the U.S.-based electric truck manufacturer Lordstown Motors (RIDE) filed for Chapter 11 bankruptcy.
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Workhorse started producing W750 electric vans in its manufacturing plant located in Union City, IN. It also entered into a partnership with Smyrna Truck, which is set to become Workhorse’s first certified dealer in Georgia. This partnership will enable Workhorse to expand its network for customers. Smyrna Truck has a 700,000-square-foot facility in Milledgeville, GA and one facility in La Grange, TX. It is a wholly-owned subsidiary of Fouts Bros, Inc.
Rick Dauch, CEO of Workhorse, stated that these milestones reflect the company’s progress toward making advancements in its product roadmap and executing the company’s strategic growth plan. He added that the company is excited to see its W750 van rolling out of its manufacturing facility and is poised to ramp up the vehicle’s production in the coming months. Last year, Workhorse discontinued its Class 3 C-1000 van to focus on W750, W4CC and W56. The company also signed a cab and chassis deal for W750 with GreenPower in March 2022. The W750 has an interior volume of 750 cubic feet and 150 miles of range on a 118-kWatt battery. It takes about 11 hours to recharge on a level 2 charger and around three to four hours on a level 3 charger.
Lordstown filed for bankruptcy last Tuesday. The Chapter 11 bankruptcy, typically intended to facilitate business reorganization, took an unexpected turn as the company seeks to sell its Endurance truck assets. This raises doubts about what will remain of RIDE once the process concludes, signaling a potential conclusion to the Lordstown saga. Besides filing for bankruptcy, Lordstown sued Foxconn for fraud and failure to meet its commercial and financial commitments. Lordstown alleges that Foxconn's actions have caused significant damage to the company and its prospects.
Last November, Lordstown inked a deal with Foxconn. Per the deal, Foxconn agreed to invest up to $170 million in Lordstown to aid the production of RIDE’s debut EV truck model, Endurance. In May 2023, Lordstown raised concerns over an ongoing dispute with Foxconn about the planned investment and the uncertainty of Foxconn fulfilling its funding obligations per the deal. In June, Lordstown admitted there was ‘substantial doubt regarding our ability to continue as a going concern’ in the light of insufficient cash to fund the production and the sale of its much-anticipated Endurance pickup.
Blink revealed its plans to integrate both the NACS and the CCS plugs into its range of products, aiming to fulfill the charging needs EV drivers. Brendan Jones, president and CEO of Blink, said that since the announcement of the integration of NACS connectors into its new 240-kW DC Fast Charger, the company has diligently advanced the integration of NACS connectors across its entire Blink charger product line. Blink will begin the production of NACS DCFC chargers by October 2023 to establish a robust supply chain.
Besides expanding its line of DC Fast Chargers, Blink will also offer NACS inclusion in its line of Level 2 (L2) chargers. In the United States, nearly 90% of EV charging is acquired using L2 chargers. Due to this reason, providing accessible technology becomes crucial for charging network operators to minimize confusion among drivers and create a convenient and seamless EV charging environment. Brendan Jones added that Blink’s engineering team demonstrated the swift integration of NACS connectors into the company’s line of L2 chargers, resulting in notable time-to-market savings. The company expects to release new NACS and 1772 dual units in early 2024 from its Bowie, MD, manufacturing facility.
Volkswagen’s subsidiary Electrify America said that it will add Tesla’s (TSLA) NACS connectors to Electrify America and Electrify Canada’s fast-charging networks by 2025. The company also added that it has no plans to remove the existing CCS connectors from its network. The CCS plug will continue to operate alongside the NACS connector in Electrify America’s charging network.Electrify America is an EV DC fast charging station network in the United States. With Electrify America, one more company stepped forward to make Tesla’s NACS connector a charging standard in North America. The Volkswagen subsidiary currently has 850 charging stations and 4,000 individual charger units in the United States and Canada. It currently operates stations in 46 states across the United States.
VWAGY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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