Workhorse’s new electric pickup puts Tesla on notice
Company says its W-15 truck, with range of 80 miles per charge, will be pitched to businesses
A new electric pickup is coming from a Ohio-based manufacturer even as Tesla gears up to make its own.
The advent of the Workhorse W-15 shows that while most people haven’t exactly embraced electric-powered vehicles — they make up less than 1% of overall vehicle sales — there remains a potentially strong market among service companies that operate fleets of pickups.
Workhorse Group, a Loveland, Ohio, company that has been making medium-duty electric vans, says that with a range of 80 miles per charge the W-15 will meet the needs of a wide range of companies, from electric utilities to plumbing contractors. And, in a likely key difference from the Tesla pickup on the horizon, the W-15 will have a backup, 3-cylinder gas motor to let it drive longer distances in a pinch.
The W-15 will be built in Union City, Ind., with a price tag of $52,500. The pitch to prospective buyers will be that they can then save dramatically on maintenance and gas, effectively cutting the price of the trucks.
“We sell it on economy. This is a less expensive truck,” Workhorse CEO Steve Burns says.
But it is likely to run headlong into competition from Tesla, which plans not only pickups, but heavy-duty haulers as well. Tesla, the Palo Alto, Calif.-based electric-car maker that has become a Wall Street darling, will have a pickup within two years, CEO Elon Musk tweeted last month.
Detroit’s Big 3, which dominate the pickup market, have offered hybrid pickups in the past but shied away from full electrics. One company, Via Motors based in Orem, Utah, has been converting new pickups to become plugin extended range vehicles. Workhorse, however, plans an entirely new design.
Companies operating fleets have an advantage over individual truck owners when it comes to electric vehicles because they generally know the maximum number of miles workers travel in a day, so they can ensure any electric vehicles they buy have adequate range. Also, electrics can be centrally charged overnight.
Workhorse Group said in March it had received 2,150 “letters of intent” to buy the W-15 from major utilities and energy producers such as Duke Energy, Portland General Electric, the Southern California Public Power Authority and Clean Fuels Ohio. It says it also has one from the city of Orlando.
Tuesday, Workhorse said it was entering into a 10-year “strategic partnership” with corporate vehicle provider Ryder System to become the distributor and service source for the truck.
The trucks are likely to become part of Ryder’s rental fleet, says Scott Perry, chief technology and procurement officer for Ryder.
“I think electric vehicles in general are gaining more and more recognition,” Perry said.
Workhorse Group reported it lost $19.5 million last year and had sales of $6.4 million. Tuesday, its stock closed at $2.15, up 7.%.