Key Highlights

  • WKHS shares trading up 11.96% to $2.86 after a Thursday Partnership announcement.
  • The deal with UK-based RHAELM involves the company's TerraPod product for modular AI infrastructure.
  • Second-quarter Revenue was $3.6 million, with a net loss of $20.2 million, or $1.86 per share.
  • Cash stood at $9.6 million at June 30, against $30.0 million drawn on a Cash Flow Credit agreement.
  • Third-quarter results are scheduled for November 12, 2026, after the market close.

RHAELM Partnership Pulls Workhorse Deeper Into Modular AI Infrastructure

Workhorse Group (NASDAQ:WKHS) shares are trading up 11.96% after the company said it is entering the modular AI infrastructure market through a foundational partnership involving its TerraPod product and UK-based RHAELM. The announcement was made on Thursday, October 29, and the release gave limited detail on deal size or timing.

Workhorse is an American engineering and Manufacturing company focused on electrification, high-voltage systems and ruggedized mobile platforms. It builds electric commercial vehicles at its Union City, Indiana plant, and it has been widening its focus beyond trucks in recent months.

In July, the company outlined plans for containerized mobile AI data centers, with initial production and deliveries targeted for 2027. The RHAELM tie-up appears to be the first named partner for that push.

The July plan described turnkey units with liquid cooling, isolated server racks and backup power, delivered through partners rather than sold directly to end users. Management has said higher factory Volume from that Business could improve plant utilization for its electric trucks.

Second-Quarter Loss of $20.2 Million Frames the Penny Stock Rally

Workhorse reported second-quarter 2026 revenue of $3.6 million, up from $0.8 million a year earlier, although the earlier period reflects only Motiv following the December 2025 reverse acquisition. The net loss widened to $20.2 million, or $1.86 per share, from $12.8 million, or $1.38 per share.

The gross loss was $7.5 million on cost of sales of $11.0 million, and the operating loss reached $19.4 million. The company delivered 26 vehicles in the quarter, compared with four a year earlier.

First-half revenue was $7.9 million, against $8.2 million on a pro forma basis a year ago. Management has said the sales pipeline has more than doubled since the start of 2026 and expects to build more Class 5 and 6 chassis over the next five months than in any prior five-month stretch.

Thin Cash and Rising Borrowings Keep Financing in the Spotlight

Cash and equivalents were $9.6 million at June 30, with another $0.7 million restricted. Borrowings included $30.0 million under a cash flow credit agreement and $18.3 million under a customer order credit agreement, and the company drew a further $10 million after quarter-end.

Market data pulled earlier this month put the company's Market Value at roughly $29 million, with a 52-week range of $2.31 to $13.56. Management has targeted a $20 million annualized cost synergy run rate by the end of 2026.

Fleet Orders and November 12 Earnings Set the Next Test for Workhorse

Recent commercial updates include a 200-truck expansion with Gateway Fleets on September 30 and a Canadian sales and service agreement for the W56 step van with Tristan Fleet Management on October 22. The company has also described a growing order Backlog without disclosing a figure. Investors will watch the November 12 third-quarter report for delivery volumes, cash burn and any detail on how the AI infrastructure business is expected to contribute.