Production Cut tends to Workhorse shares skid

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On Monday value of shared for Workhorse Group is slumped about 9% due to revision of production target as quarterly revenue is slumped to one fifth, so company have revised the target to half of actual planned.

Due to Covid 19 impact along with shortage of global semiconductor chip shortage have made to some of delay in productions including Ford Motor, Honda Motor, General Motors and Volkswagen.

According to Chief Executive Officer Duane Hughes “Bottlenecks within the global supply chain and offshore shipping delays of commodity raw materials and components as well as our initial stages of production limited our capacity to produce during the first quarter,” Now as per revised production its being targeting to achieve 1000 units which earlier planned for 1800 for 2021 session.

Company have seen revenue target achieved at 521,000$ which was expected to be $2.6 million, according to Refinitiv IBES.

“Overall, while the production performance and outlook were disappointing, bright spots like the Poindexter deal could provide an offset,” said Michael Shlisky, an analyst at Colliers Securities.