Workhorse Pivots to Mobile AI Data Centers as It Scales EV Truck Production
The micro-cap EV truck maker, fresh off its Motiv merger, is reinventing itself as an industrial technology company targeting a $41B mobile data center market.
WKHS · Earnings Call · 2026-08-13
It is rare for a company to reinvent itself on an earnings call, but Workhorse Group has done exactly that. After closing the Motiv merger in December 2025, the company is pivoting from a pure-play EV truck manufacturer into what CEO Scott Griffith calls 'a new American industrial technology company.' The centerpiece of that pivot is a planned entry into the mobile AI data center market—a nascent but fast-growing segment that third-party research pegs at $41 billion by 2031.
The company is positioning itself as a design, engineering, and manufacturing partner for containerized, compute-ready AI data centers. As Griffith put it, “we announced plans to develop a turnkey compute ready, containerized mobile AI data center” — Scott W. Griffith · 2026-08-13. This is a mobile data center play that leverages Workhorse's existing strengths in power electronics, thermal management, ruggedized structures, and systems integration. The company is targeting 2027 for production and early commercial deliveries, with development milestones expected in the quarters ahead. Scott Griffith noted that the first phase is 'phase zero, developing the platform itself,' and that prototyping and manufacturing readiness should be completed in the next 10–12 months. “I think the key steps right now are know, what I would call a phase zero, developing the platform itself.” — Scott W. Griffith · 2026-08-13 The pivot is not a departure from the core business but an extension of it. Workhorse continues to push forward on its electric truck program, with a strong focus on BOM cost reduction to reach price parity with internal combustion vehicles. The company is consolidating systems, working with new suppliers, and designing a modular chassis that will expand its addressable market beyond step vans into a wider range of Class 5/6 trucks. 'We believe these efforts, alongside several others, are expected to result in a substantial reduction in the overall BOM costs,' Griffith said. The goal is to replicate China's adoption curve, where sales of commercial electric trucks surged from under 5% to over 50% of new trucks once prices approached parity with ICE. The twin strategy is already bearing fruit on the order front. Backlog includes 100 vehicles each from Purolator and Gateway, and management expects to produce more vehicles in the next five months than in any previous comparable period. The company is also refreshing its sales approach, with a new enterprise sales team and promotional pricing. This is a deliberate shift from the prior quarter's stance, where Scott Griffith noted, “I wouldn’t say it was a test. I think we’re ready to start running these types of promotional pricing.” — Scott Griffith, CEO · 2026-05-14 That pricing helped secure the Gateway order, a clear validation of the strategy. Financially, the company is still in the investment phase. Revenue in the second quarter was just $3.6 million, and the company posted a net loss of $20.2 million. Cash stood at $9.6 million at quarter-end, and the company drew an additional $10 million on its credit facility in August. The capital position remains tight, but management is counting on the second-half production ramp and the mobile data center opportunity to drive growth. The stock, which has collapsed from its 2021 peak, has rallied 32% over the past 90 days, likely in response to the strategic pivot. Whether that rally is sustainable depends on execution. As Jody Davis, the new CFO, said about the cost-down program: “we really think that this is a 12 to 18 month time frame for us.” — Jody Davis, Chief Financial Officer · 2026-08-13 That timeline also applies to the mobile data center entry, making 2027 the critical year for Workhorse's transformation. This is a high-stakes bet for a micro-cap with limited liquidity. But the company is tapping into a broader secular trend—the need for localized AI compute—and it has financial and manufacturing assets that could give it an edge. The combination of a cost-down truck program and a new revenue stream in AI infrastructure makes this one of the more interesting strategic pivots among small industrials.Workhorse is transforming from a pure play manufacturer of electric commercial vehicles into a new American industrial technology company built to serve critical commercial, government, defense, and infrastructure markets.