The Executive Order from the California Air Resources Board permits Workhorse to sell its C-1000 Extended Range electric delivery van in every state throughout the U.S., the company said. It's also a key step in making the truck eligible for state subsidies.
The news didn’t do much for Workhorse shares, which recently traded at $22.98, down 2.75%. But the stock has skyrocketed 657% year to date amid investor mania for electric vehicle stocks.
"Adding our Extended Range C-Series model to the CARB-approved list provides us with yet another option for potential buyers looking to electrify their fleets in more than a dozen energy-focused states," Workhorse CEO Duane Hughes said in a statement.
"We have submitted the application for getting this vehicle model into the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project.” That would be “a material sales driver as additional funds become available through the program,” he said.
During testing, “Workhorse's C-1000 Extended Range achieved an urban/highway blended driving range of 149 miles per charge, with the urban driving average approaching 160 miles, which most closely emulates the duty cycles of last-mile delivery programs,” the company said.
On Tuesday, Roth Capital analyst Craig Irwin downgraded Workhorse Group to neutral from buy, after a U.S. Postal Service spokesperson told Roth the USPS won’t decide who wins the competition for its next generation of delivery trucks until year-end, he said. Irwin cut his share-price target to $27 from $33.