Workhorse Group (WKHS stock) (NASDAQ:WKHS) went up a lot when the market opened on Wednesday because investors were told about the company’s plans and how the SEC investigations were going.
First, the business announced that it is ending the C1000 program immediately in order to concentrate on the W4 CC, W750, and W56 vehicles. Because of this, the company expects to have a non-cash inventory write-off of about $10 million, plus costs for getting rid of the items.
The SEC’s inquiry of the EV manufacturer, which was begun in September 2021, has been completed, according to the firm in other places. The update says that there is no talk of going to court against the company.
“We are happy to put legacy difficulties behind us at the end of 2022, and we are looking ahead to 2023 completely focused on executing our commercial vehicle product roadmaps and expanding our Aero and Stables & Stalls businesses,” said the company’s CEO, Rick Dauch. “We are on pace with our objectives to build up production and delivery across our W4 CC, W750, and W56 in 2023 and beyond.”
Developments Behind WKHS Stock
Just after the market opened on Wednesday, the stock of Workhorse Group increased by 3.72%. Workhorse is stopping the C1000 program right away so that it can put all of its energy into making a product roadmap for the W4 CC, W750, and W56 vehicles. After a lot of engineering analysis, testing for durability, and careful thought, the company decided that the extra time, money, and resources it was spending on the C1000 would be better spent on developing and making its other vehicles and goods. Because of this, the company expects to have a non-cash inventory write-off of about $10 million, plus costs for getting rid of the items.
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