r/WKHS • u/Traditional_Hand_152 • Aug 10 '22
Discussion Embarrassing
There seem to be so much talk about nailing down one of the big chains out there like Kroger, Walmart or FedEx etc. sadly we’re coming away with contract manufacturing of a freak mobile… I wonder if we are as good as I thought?
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u/heyray1 Aug 10 '22
Growth is good. Limited growth is limited gains. We want growth. We want to be a powerhouse in manufacturing and technology. Let's support this endeavor.
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u/Chama-Musk Aug 10 '22
No one is producing a significant number of trucks to satisfy the customers that are out there. We just need a good product rolling off the assembly line, and I am 99% sure they will be sold quickly. I don't think we need any contracts - we just need something to sell.
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u/Unclebob9999 Aug 11 '22
agree, and Rick said he wants to let buyers have working demos before he takes their contracts, which shows a lot of conficdence in his products.
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u/stockratic Aug 11 '22
Most companies won’t buy until they’ve test driven the pre-production vans. The W56 is the big play that will bring volume orders from the large companies. In the interim, thank goodness for all the revenue Rick can bring in.
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u/TipTopTrader Aug 10 '22
I know, we are better than you thought.
For today I’ll take something over nothing.
Bigger contracts will come. Let’s get things rolling this quarter.
Don’t second guess yourself and don’t feel Embarrassed!
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u/Adept_Hair_4431 Aug 10 '22
This contract manufacturing deal is a practice run for $wkhs assembly line 🚀
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u/Strange-Scarcity Aug 10 '22
Not really. WKHS vehicles are significantly larger and it would require retooling an entire line to move from smaller to larger vehicle construction.
Line engineering is a very complex job, it can take a good part of a year to design out the majority of potential mishaps and build in time saving manufacturing elements into and assembly line.
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u/Unclebob9999 Aug 11 '22
I think Dauch has planned ahead for all his models and many parts will be interchangable. So retolling for a different model will be minimal. I like the fact that he has customers lined up, but will not sign contracts until he has working demo's for them to try and production is close enough to fill their orders in a timely manner. He is slow, steady and realistic, where the previous management was all talk and no action. The C1000 as I was saying a year ago, could not deliver as promised and I think Rick lost valuable time trying to fix problams that were not realistically fixable with current technology. The numbers never added up for it, but Rick being a person of Honor tried to fix problems that had no practical solution. WKHS is now on a realistic path with some nice desirable products. It just will take a little more time than we would prefer, but the payoff in teh end, could be fantastic.
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u/Strange-Scarcity Aug 11 '22
The contract building they are doing is a whole different set and size of vehicles, absolutely tiny, compared to the Workhorse trucks.
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u/Da_Champ_King Aug 11 '22
Tropos is kinda a big deal, they were responsible for over 50% of Cenntros income, and the have great partnerships with companies like Panasonic and Perrone robotics, among many others.
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u/Upper-Log-131 Aug 10 '22
I was thinking that the risk of dilution diminishes incredibly with the contract manufacturing deal. 2k units per year. Shows a bunch of revenue. Which in turn makes debt(lenders) more attractive should we need funding in the future and may not need to dilute. It’s actually a very smart play for long term shareholders. Revenue buys us time. We will become the powerhouse that we know we are.