EV maker Workhorse secures $25M lifeline
The company has admitted that it would need at least $300 million to repurpose GM's shuttered Lordstown factory.
Workhorse, the EV startup that hopes to take over General Motors' Lordstown factory, has secured $25 million in investor funding.
The company plans to use the investment for general working capital and research-and-development projects, with a specific focus on its N-Gen all-electric delivery vehicle.
"This funding provides Workhorse with sufficient capital to fully deliver on our existing backlog and will enable us to make significant strides in our strategic vision of being a leader in the electric last mile delivery space," said CEO Duane Hughes. "We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production and are looking forward to commencing the manufacturing process, in earnest, during the fourth quarter of this year."
General Motors raised a few eyebrows when it announced talks to sell its Lordstown plant to Workhorse. The little-known startup has been operational for 12 years but has only delivered a few hundred vehicles to shipping companies.
Workhorse recently admitted that it would require at least $300 million in funding to repurpose the Lordstown facility. Reports suggest the viability of the plan may hinge on several potential contracts that have not yet been secured, including a competitive bid to supply the US Postal Service with a fleet of electric cargo trucks.