Workhorse stock falls after sales miss, need to revise vehicle design to boost payload

Shares of Workhorse Group Inc.
WKHS,
+2.57%

slid 3.5% in premarket trading Monday, after the electric-vehicle maker reported second-quarter sales that rose much less than expected. The company said it would have to redesign its C-1000 vehicles to increase the payload. The company reported a net loss that narrowed to $43.6 million from $131.3 million a year ago; Workhorse did not provide investors with what the losses were per share. Sales rose to $1.20 million from $91,942 a year ago, while the average estimate of the six analysts surveyed by FactSet was $5.4 million. Workhorse said the increase in revenue comes after deliveries increased to 14 trucks during the second quarter from one a year ago. “What is clear from the initial customer feedback is that we need to further increase the payload capacity of our vehicles,” said Chief Executive Rick Dauch. While we revise the design the vehicle, we believe we can continue with a limited level of production for customers where our current payload is adequate or those who want to road test one of the few, if not only vehicles in our market that are available to them now.” The stock has plunged 48.9% year to date through Friday, while the S&P 500
SPX,
-0.08%

has gained 18.1%.

William Murphy

William Murphy

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