Workhorse Group’s Strategic Resilience: A Contrarian Bet on Execution in EV Trucks

In an EV truck market increasingly dominated by hype-driven speculation, Workhorse Group (NASDAQ: WKHS) is quietly building a fortress of operational execution. While peers chase headlines with grandiose promises, Workhorse is delivering tangible progress: real trucks on real roads, cost discipline that rivals lean startups, and strategic partnerships that signal a path to profitability. For investors tired of overvalued EV darlings with no revenue to show for their buzz, Workhorse’s contrarian approach offers a compelling risk/reward opportunity. Here’s why now is the time to act.

Dealer Network Expansion: Building a National Sales Machine

Workhorse’s May 2025 partnership with Ziegler Truck Group—a CARB HVIP-certified dealer network—marks a pivotal shift from niche player to regional electrification powerhouse. By adding dealers in the Pacific Northwest (via Range Truck Group) and the Midwest (DeForest, Wisconsin), Workhorse is securing prime positions in two of the fastest-growing EV markets in the U.S.

These expansions aren’t just about geography. Ziegler’s HVIP status grants customers access to California’s $2 billion Heavy-Duty Vehicle Incentive Program (HVIP), slashing upfront costs for fleets transitioning to zero-emission trucks. For Workhorse, this is a revenue lever: every W56 sold through these dealers could net an extra $30,000–$40,000 in incentives—a margin boost competitors can’t match.

Cost Discipline: Cutting Fat, Not Muscle

While Tesla and Rivian burn cash on flashy factories and ad campaigns, Workhorse has slashed annualized operating expenses by $9.3 million since 2024. The March 2025 reverse stock split (1-for-12.5) wasn’t just about Nasdaq compliance—it signaled a ruthless focus on liquidity.

Despite Q1 2025 revenue dipping to $600,000 (vs. $1.3 million in 2024), Workhorse prioritized execution over optics:
- Product Validation: A 2,400-mile cross-country test of the W56 demonstrated its reliability in extreme conditions.
- Supply Chain Control: Partnerships like Geotab telematics integration and Ziegler’s nationwide service network ensure fleets get support, not just vehicles.

The takeaway? Workhorse is leaner, meaner, and ready to scale when demand surges—a stark contrast to EV startups drowning in red ink.

Customer Validation: Real Fleets, Real Revenue

Workhorse’s Q2 2025 progress hinges on two pillars:
1. Gateway Fleets Partnership: An order for W56 step vans to serve FedEx’s independent service providers (ISPs) sets a template for recurring revenue. This isn’t a one-off deal—it’s a network play, as Gateway plans to expand deployments across its fleet.
2. Municipal Contracts: A Washington municipality’s order of W4 CC trucks for waste management proves demand isn’t limited to private fleets.

Critics cite Workhorse’s paltry revenue, but they miss the bigger picture: customer pipelines are growing. With 27 purchase orders inked in early 2025—including extended-wheelbase W56s for a national customer—Workhorse is primed to explode when its 140 kWh battery version launches later this year.

The Contrarian Play: Why Buy Now?

Workhorse’s skeptics focus on the obvious: $2.6 million in cash, no blockbuster revenue, and a stock price hovering near penny-stock territory. But this is precisely why it’s a contrarian gem:

1. FedEx’s Imminent RFQ: A Q2 2025 Request for Quotation from FedEx could unlock hundreds of millions in orders for WCF (Workforce Charging Facility) partners. Workhorse’s W56 is a direct fit for last-mile delivery—a market FedEx controls.
2. Incentive-Driven Growth: Ziegler’s HVIP dealerships turn every W56 sale into a cash-positive proposition for fleets—no subsidies needed.
3. Supply Chain Resilience: Unlike startups reliant on Chinese batteries, Workhorse sources cells from North America’s A123 Systems, avoiding trade war risks.

Risks and the Bottom Line

No investment is without risk. Workhorse’s $41.3 million in inventory (as of Q1 2025) hints at overstocking, and its $2.6 million cash balance demands discipline. Yet, the company’s Q2 goal to ship 18 trucks—a sixfold increase—shows it’s not waiting for the perfect storm.

For investors who prioritize execution over hype, Workhorse’s combination of dealer network scale, cost control, and customer traction makes it a rare EV play with a path to profitability. With shares down 70% YTD and peers like Nikola burning $500 million annually, WKHS is a contrarian’s dream: a lean, proven operator in a $300 billion EV truck market.

The question isn’t whether the EV transition is real—it’s happening. The question is: Will you bet on promises, or on proven results?

The answer is clear. Workhorse isn’t just surviving—it’s setting the pace for the future. Act now before the crowd catches on.