In May, Workhorse said it was in talks with
Despite Workhorse’s dismal earnings,
“As we’ve said before, our potential agreement with Workhorse and an affiliated, newly formed entity to sell the
As of late last week,
“Workhorse, which is going to be an investor in the new company that would buy
Cain said raising that money is good news because it makes Workhorse’s core business stronger, giving the new company an ability to acquire the plant. Cain said discussions continue and “things are moving forward in a good direction,” but he declined to put a time frame on a possible deal, noting that the UAW would have to approve it first.
Workhorse shares plummeted 26% to $2.96 during trading Tuesday. Bloomberg reported that Workhorse CEO
“We view the plant as a potential game changer for the postal service contract,” Hughes said in Bloomberg’s article.
In May, in a tweet, President
“GREAT NEWS FOR
But Workhorse was low on cash. Last year, Workhorse generated sales of $763,000. The company also lost $36.5 million. A day before Trump’s tweet, Workhorse told regulators it could soon be insolvent.
It is common for a startup to lose money. Workhorse does have a significant customer base and has made leadership changes. It also shifted its focus on bringing a new electric cargo van to market to fulfill a backlog of orders.
In June, Workhorse said it secured $25 million for research and development toward its next generation of electric vehicles.
In the proposal to
(c)2019 the Detroit Free Press
Visit the Detroit Free Press at www.freep.com
Distributed by Tribune Content Agency, LLC.