SEC Plans No Enforcement Action as Probe Into Workhorse Group Ends

CINCINNATI, Ohio – Electric-vehicle manufacturer Workhorse Group Inc. announced today that the U.S. Securities and Exchange Commission has concluded its investigation into the company and does not plan to recommend any enforcement action.

“The company received notice from the Securities and Exchange Commission that the previously disclosed investigation of the company has concluded, and the SEC does not intend to recommend any enforcement action against the company at this time,” Workhorse said.

The SEC opened its investigation in September 2021 into Workhorse, an early investor in Lordstown Motors Corp. During the third quarter of that year, Workhorse sold its interest in Lordstown Motors, recording a loss of approximately $76.5 million, according to regulatory filings.

Former Workhorse CEO Steve Burns resigned from the company in 2019 to start Lordstown Motors. Workhorse retained an approximate 10% ownership in the company in exchange for providing the EV startup with technology and design services.

Burns resigned from Lordstown Motors in June 2021 after an internal inquiry found that company officials exaggerated the number of preorders for Lordstown’s first vehicle, the all-electric Endurance pickup.

The SEC and U.S. Department of Justice have opened separate investigations into Lordstown Motors. Those investigations are still pending.

Workhorse also said today it is discontinuing the C1000 program, effective immediately, as it fully focuses its resources on advancing its product roadmap for other electric vehicles.

“We are pleased to conclude 2022 with legacy issues behind us and are looking ahead to 2023 fully focused on executing our commercial vehicle product roadmaps and advancing our Aero and Stables & Stalls businesses,” said CEO Rick Dauch. “We are on track with our plans to ramp up production and deliveries across our W4 CC, W750 and W56 in 2023 and beyond. We remain confident in our ability to win in the EV market and create value for our customers, our communities and our shareholders.”

The company reaffirmed its revised guidance range for 2022, which includes manufacturing and delivering approximately 25 to 100 vehicles and generating between $5 million and $15 million in revenue. The company also continues to expect to generate significant revenue growth in 2023, as it ramps up production of its products.

Published by The Business Journal, Youngstown, Ohio.