Workhorse EV start-up experiences a quarterly loss due to recalls and announces new product strategy.

• Workhorse Group expects to deliver just 250 vehicles in 2022.
• GreenPower Motor's chassis will be used to build the first examples of a new van, which will be a mix of Workhorse's outgoing C-1000 commercial vans and the new van.
• Workhorse reported a net loss of $156.1 million in the fourth quarter.

The electric vehicle start-up anticipates constructing approximately 250 vehicles in 2022 following a product-roadmap revamp, as stated by the company on Tuesday.

Despite its efforts for several years, Workhorse has not been able to gain market traction for its electric commercial vans. The company's C-1000, launched in 2020 for last mile delivery service, was recalled last year due to CEO Rick Dauch's order for a redesign.

The company has decided to stop producing the model once its current stock of parts is depleted.

In the fourth quarter of 2021, Workhorse reported a net loss of $156.1 million, a significant decrease from the $280.5 million net profit it recorded in the same quarter the previous year. This decline was due to a $322 million loss on its stake in another EV startup.

Workhorse sold its stake in Lordstown during the third quarter.

Since joining Workhorse in July of last year, Dauch has made significant changes to the company, including hiring a new senior leadership team, opening a new technical center in Michigan, and revamping the product plan.

It may take some time for investors to see the tangible outcomes of those efforts.

The company announced on Tuesday that the new product plan relies on two new electric commercial vehicle platforms, with the first one not set to begin production until the third quarter of 2023.

Another new electric commercial van will be built by Workhorse using a chassis from a Canadian competitor.

GreenPower will provide 1,500 EV chassis to Workhorse over 21 months, starting in July. Workhorse will construct its new vans on those chassis, with the first of the new vans expected to ship by the end of September.

According to Chief Financial Officer Bob Ginnan, who spoke on Tuesday, our 2022 outlook reflects our planned gradual increase in manufacturing, which is delayed, as we anticipate not producing any vehicles in the first half of the year.

Ginnan stated that the new vans, along with the remaining C-1000s, should generate at least $25 million in revenue in 2022.

As of Dec. 31, 2021, Workhorse had approximately $201.6 million in cash reserves.