Electric delivery truck maker Workhorse Group (WKHS -5.01%) has had a rough start to its commercial business. It updated investors with its second-quarter results today, and the response wasn't positive. Workhorse shares are down 62% over the past year, including a drop of 14.2% this morning as of 10:12 a.m. ET.
In September 2021, Workhorse halted production and deliveries of its commercial vans. It also recalled all 41 of the C-1000 trucks it had already shipped. The company said it needed to alter its vehicle design to certify the C-1000 under Federal Motor Vehicle Safety Standards.
In its third-quarter financial update in November, management said it was continuing testing "with plans for future reconfiguration." Today's update said the service and repair of all recalled vehicles should be complete by the end of 2022. It also said it planned to make another 50 to 75 vehicles from existing inventory through the end of the year.
But that wasn't good enough for investors, who have waited nearly a year for Workhorse to fix its operational issues. With virtually no revenue coming in, the company reported a net loss of $21.2 million in the second quarter, bringing its six-month total losses to more than $43 million. As of June 30, 2022, the company was down to just $140 million in cash and equivalents on its balance sheet.
What most likely got investors running from the stock today, however, was lowered guidance compared to the prior quarterly update. After its Q1 report, management said Workhorse expected to generate at least $25 million in revenue for 2022. Now the company says it sees sales of $15 million to $25 million for the year. Investors view that as an already troubled company heading in the wrong direction.