Core Viewpoint - Workhorse (WKHS) stock has declined by 7% following a 1-for-12 reverse stock split, raising concerns among investors about the company's financial health and future compliance with Nasdaq listing requirements [1][3][4]. Company Summary - The reverse stock split reduced the total number of WKHS shares outstanding from approximately 26 million to about 2.17 million, with fractional shares rounded up [1]. - Post-split, Workhorse shares are trading at just over $7, categorizing them as a penny stock [2]. - The reverse split was a strategic move to meet Nasdaq's minimum listing requirements, indicating potential delisting risks if compliance is not achieved [3][4]. Financial Health and Performance - The reverse split raises significant questions regarding Workhorse's financial health and operational performance, making the stock unattractive for long-term holding [5]. - Continued selloff after the split suggests a lack of confidence from both institutional and retail investors regarding the effectiveness of the corporate action in addressing core business challenges [5]. Market Sentiment and Risks - Workhorse remains vulnerable to high volatility and speculative trading behaviors, which can adversely affect late investors [6]. - The electric vehicle sector is experiencing a shift in investor sentiment, favoring traditional automakers over smaller, pure-play EV companies, further increasing the risk associated with owning Workhorse shares [6]. - WKHS stock coverage is limited to only three Wall Street analysts, indicating a lack of deep institutional research and insights [7].

Financial Data and Key Metrics Changes - The preliminary results indicate that all proposals presented at the meeting have been approved by stockholders, which may impact future financial strategies and capital structure [7][8]. Business Line Data and Key Metrics Changes - Specific product portfolio plans for the merged company will be executed by the new leadership team, focusing on commercial electric vehicles (EVs) which are expected to have lower total cost of ownership compared to internal combustion engine (ICE) vehicles [15][16]. Market Data and Key Metrics Changes - The company anticipates a significant demand for new commercial EV markets in classes 4, 5, and 6, indicating a competitive landscape where at least two U.S.-based original equipment manufacturers (OEMs) will be necessary to meet this demand [16]. Company Strategy and Development Direction - The company aims to leverage U.S.-based assembly capabilities and engineering expertise to design robust trucks, emphasizing the importance of domestic production for long-term success and scalability in the commercial EV sector [15][16]. Management's Comments on Operating Environment and Future Outlook - Management has expressed confidence that the proposed Motiv transaction will close in the fourth quarter of 2025, contingent upon meeting Nasdaq's new listing criteria and other customary closing conditions [14][15]. - The CEO highlighted the strategic importance of commercial EVs, noting their cost advantages and the necessity for U.S.-based manufacturing to support future growth [15][16]. Other Important Information - The company has withdrawn two proposals from consideration during the meeting, which may reflect strategic adjustments in response to shareholder feedback [3]. Q&A Session Summary Question: What steps are necessary to complete the proposed Motiv transaction? - The transaction is expected to close in the fourth quarter of 2025, pending the completion of customary closing conditions and meeting Nasdaq listing criteria [14][15]. Question: What are the product portfolio plans for the merged company? - The merged company will focus on commercial EVs, which are seen as having a lower total cost of ownership compared to ICE vehicles, with plans for U.S.-based assembly and engineering [15][16].