A long-delayed fulfillment of a 900-unit order from United Parcel Service UPS has renewed urgency as UPS wants to apply HVIP incentives on Workhorse vans in California. Workhorse also is part of the California HVIP program, which is offering $165 million in rebates to purchasers of electric vehicles on a first-come, first-served basis. However, he said Cowen sees 'a solid opportunity' for Workhorse to gain momentum through the rest of 2021 and into 2022 with its partners, including Canada's Pride Group and Pritchard Cos., both of which have pending orders for C-Series composite body electric vans.

'We believe it is imperative for Workhorse to hit 2Q and 3Q estimates following lowered '21 production guidance in May,' Osborne wrote. It revised its prediction for full-year production from its plant in Union City, Indiana, to 1,000 from 1,800. Workhorse reported building only seven trucks in the first quarter, blaming supply chain glitches and its own manufacturing system upgrades for another quarter of single-digit production. 'Our view is that the company has a 9-12 month window before the competitive dynamics heat up,' he said, citing competition from an electric version of the Ford F Transit and deliveries before the end of the year for the EV600 commercial electric van from General Motors' GM new BrightDrop unit.

Workhorse short squeeze