Workhorse CFO Steve Schrader On The Status Of The USPS Contract, Delivery Guidance, And What Stands In Their Way

Shares of Workhorse Group Inc WKHS have been volatile of late. The stock, which was at one point up over 900% this year, has lost roughly half of its value in the last two weeks as investors have moved money away from the previously high-flying electric vehicle theme that dominated for much of the summer. 

Many Workhorse bulls have pinned their hopes on Workhorse being awarded all or part of the U.S. Postal Service Next Generation Delivery Vehicle contract, which some estimates say could be worth as much as $6 billion. 

Benzinga recently caught up with Chief Financial Officer Steve Schrader to talk about the status of the contract, the company's production targets, and how COVID-19 has affected the business, among other things. 

Conversation Highlights

On whether the company is still on pace to deliver between 300-400 vehicles this year, as they have previously said:

"We've got everything in place right now. So we got the waiver, the materials are coming in, and from our standpoint, we still have the 300-400 that we have out there, and that's our goal. As far as we are going right now, we are good on that."

Schrader noted production is underway at the company's Union City, Indiana and Loveland, Ohio facilities. 

"The next goal will be how soon can you get to 200 a month, and even beyond that. So can I give you a month in 2020 where we'll be at 200 [vehicles] a month? No, I can't right now. But that's certainly the next goal."

On how the pandemic has impacted orders:

"It probably just delayed it. We initially wanted to get orders manufactured and delivered earlier in the year. I'm assuming it also delayed our customers from the standpoint of considering whether they would order this year or a later time period. So everybody has had to deal with it, not just us."

On how Workhorse compares to some of the other EV companies that have gotten a lot of investor attention in 2020:

"From a Workhorse standpoint, in comparison to some of the other EV companies out there, we look pretty good from the standpoint we are actually manufacturing and delivering right now. And some other companies really just have chalkboard designs that will do something in 2022 or 2023. So I think it made us look relatively pretty good."

Other Topics Discussed

  • His reaction to recent attention from short-sellers
  • Where the company would produce their USPS vehicles, should they win the contract
  • Current Workhorse and Lordstown Motors RIDE production capabilities
  • How the drone business is progressing and the timeline for FAA certification
  • What factors would stand in the way of the company scaling up production
  • Upcoming catalysts investors should know

The full interview with Steve Schrader is on Benzinga's Youtube Channel. Watch the conversation below. 

Posted In: electric vehiclesEVsLordstown MotorsSteve SchraderUS Postal ServiceUSPSWorkhorseNewsExclusivesTechInterview