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Workhorse Group (NASDAQ:WKHS) stock gained sharply on Wednesday’s open after updating investors on both plans for the business and the status of SEC probes.
Firstly, the company said it is discontinuing the C1000 program, effective immediately, in order to focus on the W4 CC, W750, and W56 vehicles. As a result, the Company expects to record a non-cash inventory write-off of approximately $10M plus disposal costs.
Elsewhere, the company said that the SEC’s investigation into the EV manufacturer, launched in September 2021, has concluded. There is no recommendation for enforcement action against the company, per the update.
“We are pleased to conclude 2022 with legacy issues behind us and are looking ahead to 2023 fully focused on executing our commercial vehicle product roadmaps and advancing our Aero and Stables & Stalls businesses,” said the Company’s CEO Rick Dauch. “We are on track with our plans to ramp up production and deliveries across our W4 CC, W750 and W56 in 2023 and beyond.”
He added that conversations with customers indicate that demand remains strong. As such, delivery guidance of 25 to 100 vehicles and revenue in the range of $5M and $15M in revenue. Revenue is expected to ramp through the year as the pace of production picks up.
Shares of Workhorse Group rose 3.72% shortly after Wednesday’s market open.
Read the company’s full statement.
Image and article originally from seekingalpha.com. Read the original article here.