EV Companies Workhorse And Worksport Both Delivered Good News This Week

This week began with good news in the EV world. On Monday, electric truck maker Workhorse Group WKHS reported earnings before the market open. Its shares bounced 4.7% in midday trading Monday after the electric vehicle maker reported a surprise fourth-quarter net profit despite falling short on sales. The good news was more than welcome after last week's selloff that plunged as low as 47.5% plunge last Tuesday, after the U.S. Postal Service awarded a contract for delivery trucks exclusively to Oshkosh Corporation OSK, while Workhorse was widely expected to win at least a part of the contract.

On Tuesday morning, tonneau-cover manufacturer Worksport WKSP announced it is expanding its capacity to meet increased demand. Worksport announced this morning that it received over US$2.3 Million to date from Exercised Warrants from the recent oversubscribed Regulation A offering.

Workhorse Q4 results

The company reported its net income rose to $280.5 million from $655,000 a year ago, thanks largely to income derived from its investment in Lordstown Motors RIDE, an electric pickup startup founded by Workhorse's former chief executive. The FactSet expected a net loss of $15.1 million. Revenues increased from $3,000 to $652,000, due to a higher volume of produced and delivered trucks, but still came short of FactSet consensus of $1.2 million.

According to its Chief Executive, the company is entering the new year in its strongest-ever position, both financially and operationally. With over $200 million of cash on its balance sheet and over 8,000 vehicles in its backlog, it can reliably continue building its multi-year growth plan.

The EV maker is not taking a recent high-profile defeat lying down

The company also revealed it will meet with U.S. Postal Service (USPS) management on Wednesday to discuss the latter's recent awarding of a 10-year contract that would place Workhorse among top EV manufacturers.

With at least 50,000 trucks to be manufactured within a decade, this will be the most dramatic modernization of the USPS fleet in three decades. While the USPS is one of the more financially strapped government entities, it's considered to be an extremely reliable business partner.

Following the USPS's awarding of the contract to Oshkosh, Workhorse issued a press release in which it clearly stated it intends to explore all avenues that are available to non-awarded finalists in a government bidding process. Its odds of getting a second shot could depend on whether President Biden is able to force out the postmaster general who was installed last year by board members appointed by former President Donald Trump.

Worksport is expanding

Pickup truck tonneau cover manufacturer Worksport announced on Tuesday morning it is in the final phase of discussions around a strategic manufacturing expansion with several Tier-1 and Tier-2 OEM manufacturers in Canada. The company aims to expand its manufacturing into North American state-of-the-art facilities with 20,000 to 50,000 square feet of operating space to meet its recent U.S.-based Private Label customer growth. 

This comes following the company's its first trademark in China. The discussions around its planned expansion involve logistics to ensure scalability in the manufacturing processes.

This article is not a press release and is contributed by IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com

The post Workhorse and Worksport Both Delivered Good News This Week appeared first on IAM Newswire.