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Workhorse's CFO On Meteoric Stock Rise, Electric Delivery Vehicle Maker's Capital Plans

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Workhorse's CFO On Meteoric Stock Rise, Electric Delivery Vehicle Maker's Capital Plans

Workhorse Group Inc (NYSE: WKHS), an electric delivery vehicle manufacturer, has rallied on developments such as passing Federal Motor Vehicle Safety Standards and, on June 30, the securing of $70 million in convertible notes.

Workhorse CFO Steve Schrader talked Workhorse's valuation, its financing and its place in the market with Benzinga.   

Benzinga: Workhorse's valuation has multiplied this month. What are your thoughts on the stock price? 

Schrader: From the standpoint of our products and the backlog of orders, I think we are showing investors that we are doing what we set out to do.

We have an all-electric van and a drone, with interest from commercial and government entities. If you look at Nikola, they are two years away from manufacturing a product. I believe our valuation looks very cheap compared to Nikola Corporation (NASDAQ: NKLA).

BZ: Workhorse just secured a $70-million note. How do you plan to use this capital?

Schrader: We plan to use the $70 million for non-production corporate and working capital. We believe this will keep us funded until 2021, and we don't expect to be in the capital markets until then.

However, we are still looking for a $40-million credit revolver to ramp up vehicle production.

BZ: How does Workhorse separate itself from the competition?

Schrader: Our trucks don't have a transmission, so we can save postal services upward of 60% of vehicle costs. Our truck will cost fleets 40 cents a mile compared to the current $1 per mile.

BZ: How does Workhorse plan to leverage Ryder? Will any of your products be available for consumers?

Schrader: We plan to use Ryder System, Inc. (NYSE: R) by leveraging their network and selling our products to smaller clients who only need a few trucks. We believe our smaller C650 and C450 could be used for anyone that wants to use a delivery truck.

Currently, we are the only available all-electric delivery truck.

Related Link: Plug Power CEO Andy Marsh On Why He Expects Fuel Cells To 'Dominate' By The End Of The Decade

Courtesy photo.

 

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