Workhorse's New Electric Van#
Workhorse Group Inc. (NASDAQ:WKHS) saw its shares increase by 5.7% in after-hours trading on Wednesday. This rise followed the company's announcement of a new electric step van model, the W56, which comes at a more affordable starting price of $169,000.
Key Features of the W56 Step Van#
The W56 Step Van is equipped with a 140 kWh battery, allowing for an estimated range of 100 miles per charge when fully loaded. This is a notable change compared to the existing model, which has a larger 210 kWh battery. The W56 is available in two configurations: the Standard 178" Wheelbase version offers 1,000 cubic feet of cargo space with an 11,000 lbs. payload, while the Extended 208" Wheelbase provides the same cargo capacity but with a slightly lower payload of 10,000 lbs. Both versions feature a specially designed composite body.
Customer Feedback and Market Conditions#
According to Workhorse CEO Scott Griffith, the new model was developed in response to customer feedback. Many fleet operators indicated that a daily range of 100 miles is sufficient for their routes. Griffith emphasized that the reduced price would enhance the appeal of electric vehicles for businesses.
Impact of Oil Prices and Production Capacity#
The announcement comes at a time when oil prices have surged past $100 per barrel due to geopolitical tensions in the Middle East. Workhorse highlighted that the new van provides fleet operators a safeguard against fluctuating fuel prices, as electricity costs tend to be more stable. The pricing strategy also reflects benefits from Workhorse's merger with Motiv Electric Trucks, which has led to cost savings through improved production efficiency. The W56 is manufactured at Workhorse’s facility in Union City, Indiana, which has the capacity to produce over 5,000 vehicles annually on a single shift.