Small electric truckmaker Workhorse is on the verge of buying General Motors’ Ohio factory in spite of its latest financial results.
In a press release detailing its financial results for Q2 2019, Workhorse revealed that its sales fell drastically from $171,000 in the second quarter of 2018 to a meager $6,000 in Q2 2019. The company blamed this drop, which saw its shares close 20.5 per cent down, on a “decrease in volume of trucks delivered.”
Workhorse states that its total operating expenses decreased by 34 per cent to $3.2 million, from $4.9 million the same period last year, and that research and development expenses decreased 36 per cent to $1.2 million from $1.9 million this time last year. The company’s net loss for the second quarter was $36.9 million, significantly more than the $6.9 million loss of 12 months ago.
These figures don’t paint a very bright picture, though Workhorse it did reiterate that it recently secured $25 million in financing from a private group of institutional investors, which will be funneled towards general working capital and research and development.
The truckmacker and GM announced in May that discussions were ongoing for the latter purchasing the car manufacturer’s plant in Lordstown, Ohio. At the time, The General said that, upon final agreement with all parties, including the United Auto Workers union, work could soon begin to prepare the facility for production. Workhorse intends on initially building a commercial electric pickup at the plant, though the price it will have to pay to acquire it is still unknown.