Workhorse Group (NASDAQ:WKHS) stock is down despite reporting second-quarter sales of $5.7 million, a 573.0% YoY increase, beating analyst estimates. The company reported a quarterly EPS loss of $1.67, better than expected. Cost of sales rose to $13.1 million, but loss from operations improved. CEO Rick Dauch noted a record 32 truck shipments and a merger with Motiv Electric Trucks.

Workhorse and Motiv Electric Trucks signed a definitive all-stock merger agreement, creating a leading North American medium-duty electric truck OEM valued at approximately $105 million. Motiv’s controlling investor will own 62.5% of the combined company, Workhorse shareholders 26.5%, and senior secured lender about 11%. Workhorse merged a subsidiary with Motiv, canceling certain debt obligations for equity.

Workhorse completed a $20 million sale-leaseback of its manufacturing plant and secured $5 million convertible note financing from Motiv’s investor. Motiv committed to provide $20 million in debt financing and the combined company plans to expand its truck lineup and pursue equity financing. The transaction, pending approvals, is expected to close in Q4 2025.

Workhorse stock has plummeted 81% YTD due to financial troubles, weak sales, and merger concerns. Shares were trading lower at $1.72. The merger with Motiv aims to address liquidity and scale challenges, with Motiv CEO Scott Griffith leading the combined company. The deal is expected to close in Q4 2025.

Read more at Yahoo Finance: Workhorse Stock Slips As Merger With Motiv Sparks Dilution Concerns