Electric vehicle company Workhorse slips 10% on news to suspend deliveries of C-1000 vehicles and recall 41 already delivered



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Shares of electric vehicle company Workhorse Group Inc.
WKHS,

slipped 10% in pre-market trading on Wednesday, after the Cincinnati-based company said it was suspending delivery of its C-1000 vehicles and recalling 41 it had already delivered. The company said its new management team has determined that the vehicles require improvements to increase payload capacity and that further testing and modifications will be required to certify the vehicle to federal motor vehicle safety standards. The company expects to complete testing in the fourth quarter and will offer an update on operating and business plans in its next third quarter earnings call. “We continue to be confident in our ability to be a leading manufacturer of long-term last mile delivery vehicles,” CEO Rick Dauch said in a statement. Workhorse filed a report with the National Highway Traffic Safety Administration on the need for testing. Shares are down 59% year-to-date, while the S&P 500
SPX,
-0.08%

gained 16%.

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