Shares of troubled electric vehicle maker Workhorse jumped as much as 43% in early trading on Wednesday, reaching $3.81 and extending their five-session rally to over 270%.
The rally comes despite persistent financial strain and a sharp decline in revenue. In its first-quarter results, reported in mid-May, Workhorse posted a net loss of $20.6 million on just $640,922 in revenue — down nearly 52% from the prior-year quarter.
The decline was attributed to lower deliveries of its W4 CC and W56 vehicles and the divestiture of its Aero business.
To avoid delisting after the stock fell below Nasdaq’s $1 minimum bid threshold, Workhorse executed a 1-for-12.5 reverse stock split in March — its second in less than a year — following a 1-for-20 reverse split in June 2024. The company regained compliance with Nasdaq listing rules in April.
While the company continues to face liquidity pressure, executives highlighted operational developments during the Q1 presentation.
“Focused on converting finished goods inventory to cash, aim to ship more trucks in Q2 2025 than in all of 2024,” the company stated in its presentation.
It also emphasized a reduced monthly cash burn rate of $2.8 million by the end of 2024 and ongoing efforts to strengthen supplier relationships.
Workhorse is seeking to ramp up production of its W56 electric step van, which recently completed a 2,400-mile cross-country trip from Ohio to California.
The vehicle achieved 27 MPGe on highways — nearly three times more efficient than traditional ICE vans — with 53% lower fuel costs and 40% lower scheduled maintenance.
Deliveries have begun to fleet customers, including FedEx and Gateway Fleets, with additional demonstrations underway.
The W56 and W750 platforms have now received regulatory approval for sale in Canada and are being marketed through a growing network of certified dealers and service providers across the U.S.
Workhorse says it is the only North American OEM currently producing complete step vans in-house.
Despite these developments, the company’s balance sheet remains strained. As of March 31, Workhorse held $30.6 million in cash and restricted cash, but its convertible note liabilities ballooned to $45.2 million, up sharply from $10.5 million at the end of 2024. It reported an operating loss of $12.8 million for the quarter.
Total operating expenses fell to $8.3 million — down from $17.6 million in the same period a year earlier — driven by significant cuts to headcount, consulting, legal, IT, and R&D costs. Capital expenditures in the quarter were just $118,000.
Workhorse said its near-term priorities include fulfilling existing customer orders, winning new purchase commitments — including a second 2025 FedEx purchase order — and completing testing of a 140 kWh battery variant for the W56.
It also plans to secure new funding while maintaining “a lower operating cost environment until the transition to EVs begins to ramp up.”
