Workhorse's (WKHS) W56 Secures CARB Nod for Incentive Program
Electric vehicle (EV) company Workhorse Group Inc. WKHS announced that its W56 electric vehicle has been approved by the California Air Resources Board for the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP). This program isaimed at reducing cost barriers for EV ownership in California and promoting the state's transition to zero emissions.
The HVIP incentive program offers a base voucher of $85,000 per W56 to reduce EV ownership costs in California. W56, a Class 5/6 chassis platform, began production in September 2023. Workhorse's CEO highlights this approval as a key step in expanding its market presence and increasing production capabilities. With the capacity to manufacture up to 5,000 W56 units annually, Workhorse is well-positioned to advance its product roadmap and contribute to the broader goal of sustainable transportation.
In 2023, Workhorse demonstrated noticeable resilience amid hurdles. Despite challenges in production and supply, particularly with the W4 CC and W750 models, the company effectively addressed these issues and also resolved the CARB HVIP voucher matter in California.
Significant strides were made in expanding product lines, including the W4 CC cab chassis, W750, and the W56 stripped chassis and step van. Workhorse also made considerable advancements in its regional dealer network, particularly in regions anticipating the adoption of CARB Clean Fleet and Clean Truck mandates between 2024 and 2027.
The company's operational improvements are noteworthy. The overhaul of its Union City, Indiana manufacturing complex, now known as "Workhorse Ranch," has enhanced production capacity significantly, enabling it to build and paint up to 6,000 vehicles per year on a single shift. This scalable production aligns with market demand, positioning Workhorse well for future growth.
Workhorse's recent achievements include receiving its first fleet purchase order for W56 step-vans in California, stabilizing W750 production and deploying additional units to FedEx Ground routes. The company has also been showcasing the versatility of W4CC through demonstrations with various back-end configurations.
Additionally, Workhorse's advancements extend beyond vehicles. It has made significant progress in its Aero business, selling drones and securing government grants. The company continues to successfully deliver last-mile packages for FedEx, gaining new route assignments through its Stables initiative.
These accomplishments, along with new IT and operating system implementations across various business functions, have strengthened Workhorse's financial position. It has secured funding through green convertible notes and forward purchase contract facilities, totaling up to $90 million.
Looking ahead to 2024, Workhorse is focused on operational execution and delivering high-performance battery-electric trucks and drones. The transition from a challenged EV startup to a viable OEM is underway, and the company is poised to capitalize on the growing demand for EVs.
Zacks Rank & Other Key Picks
WKHS currently carries a Zacks Rank #2 (Buy).
Some other top-ranked players in the auto space are Toyota TM, O’Reilly Automotive ORLY, and PACCAR PCAR.
The Zacks Consensus Estimate for TM’s fiscal 2024 sales and EPS implies year-over-year growth of 11% and 45%, respectively. The earnings estimate for fiscal 2024 and 2025 has been revised upward by $1.98 and 5 cents, respectively, in the past 60 days. Over the trailing four quarters, Toyota surpassed earnings estimates on all occasions, the average surprise being 47%. The stock currently carries a Zacks Rank #2 and a VGM Score of A.
The Zacks Consensus Estimate for ORLY’s 2024 sales and EPS implies year-over-year growth of 6% and 11%, respectively. The earnings estimate for fiscal 2023 and 2024 has been revised upward by 1 cent and 16 cents, respectively, in the past 30 days. Over the trailing four quarters, O’Reilly surpassed earnings estimates on all occasions, the average surprise being 4.3%. The stock currently carries a Zacks Rank #2 and a VGM Score of A.
The Zacks Consensus Estimate for PCAR’s 2023 sales and EPS implies year-over-year growth of 20.5% and 56%, respectively. The earnings estimate for fiscal 2023 and 2024 has been revised upward by 6 cents and 15 cents, respectively, in the past 60 days. Over the trailing four quarters, PACCAR surpassed earnings estimates on all occasions, the average surprise being 16%. The stock currently carries a Zacks Rank #2 and has a VGM Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
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