Workhorse Group (WKHS 2.69%) said that it has received an order for over 6,000 of its electric delivery vans — considerably more than it had expected to make in 2021.
Pride Group Enterprises, a privately held commercial-vehicle wholesaler that operates in the U.S. and Canada, has placed an order for 6,320 of its new C-Series electric package-delivery vans, said Workhorse.
"This large order solidifies our first-mover advantage and indicates the heightened interest in our last mile delivery products," said CEO Duane Hughes in a statement. Hughes noted that this is the largest order that Workhorse has yet received, and the first that will include deliveries outside of the United States.
Workhorse's C-Series, designed with input from United Parcel Service (UPS 0.20%), is a short-range electric van designed for so-called "last-mile" service, such as deliveries to homes and businesses. The company received U.S. government approval to begin building the van last year.
It's a big order for Workhorse, which has told investors that it aims to build about 1,800 vehicles in 2021. Workhorse said that the deliveries to Pride Group "may begin by July 2021 and will run through 2026." Pride Group will distribute the vehicles to commercial-fleet customers through its dealer network.
Workhorse said that inventory financing — the cash to purchase parts and tooling to build the vehicles — will be provided by Hitachi Capital America (HCA), as per a previously announced partnership between Workhorse and HCA parent Hitachi (OTC: HTHIY).