On Monday, Workhorse announced it secured $200 million in financing from two institutional lenders through a note purchase agreement. The report alleges, according to Bloomberg, the USPS truck prototypes were problematic and were greater than cost guidelines.įuzzy Panda also claims a postal driver was hurt when a parking brake in one of the prototypes failed, according to Bloomberg.Īn email seeking comment was sent to Gateway Investor Relations, the firm that handles Workhorse investor relations. Workhorse faced some criticism last week in a report by Fuzzy Panda Research, which according to Bloomberg, is a firm that owns a short position in Workhorse’s stock. Roth notes despite uncertainty surrounding any sort of outsource manufacturing agreement, a contract award for Workhorse “could reasonably be expected” to mean roughly $800 million in potential revenue for Lordstown Motors.īurns has said Lordstown Motors’ success doesn’t hinge on the USPS contract, but that its business model was built on sales of the Endurance, which, according to the company has 40,000 preorders for the truck that represent, barring delay or cancellations, about $2 billion in revenue. Steve Burns, founder and CEO of Lordstown Motors, also founded Workhorse. Workhorse has a minority 10 percent stake in Lordstown Motors, which will use Workhorse technology to produce the Endurance. Lordstown Motors’ plant, the former General Motors assembly plant, is the likely manufacturing site for the Workhorse mail truck should the Cincinnati-area company prove successful. Roth also predicts a “winner-takes-all scenario” because of costs surrounding two parts, maintenance and training organizations. “While it’s entirely possible the award is delayed, we expect a positive outcome for Workhorse,” the company note states.
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