- The company delivered another set of abysmal quarterly results well below consensus expectations. Free cash flow was negative $48.4 million.
- The company's core C-1000 truck offering requires extensive redesign due to inadequate payload capacity.
- Delay in production ramp-up likely to result in Workhorse violating debt covenants at the end of Q1/2022.
- Given the company's ongoing execution challenges in conjunction with potential debt issues and still elevated valuation, investors should consider selling their holdings or even outright shorting the shares.
For further details see:
Workhorse Group - Flawed Vehicle Design Likely To Cause Debt Issues Early Next Year