 Hello, my name is Peter Harrop. I'm Chairman of ID Tech X and I'm going to interview today Angela Strand of Workhorse We're in the space of vehicles here and some unusual ones So could you fill us in briefly Angela about what workhorse does? Sure Peter. Thank you so much So workhorse is an American technology and OEM company that is focused on emobility And specifically commercial electric vehicles and changing the way the world works That means all electric and range extended electric trucks as well as aircraft. I Think trucks are the biggest polluters in America aren't they people think of cars? They are so so Diesel and gas trucks particularly those involved in urban environments are the largest contributors to air pollution upwards of 80% Indeed and so you're not doing the regular diesel trucks Obviously diesel is increasingly going to be constrained or banned or have to at least become very expensive with extras on it because of pollution but With the range extenders some people like Mac working with right speed and some other people working with capstone turbine They're using essentially jet engines instead of a regular diesel What what is your range extender for the truck? Is it a diesel or what? We have a partnership with BMW and utilize the same gen set that they use in their i3 and i9 Oh to recharge the batteries to extend the range of the vehicle. Oh, right the i3 is is Two-cylinder engine I think from one of their scooters or something isn't it? That's quite small. You go that small No, the vehicles that we primarily manufacturer are technically called medium-duty Yeah, so if you think about any anything in size from a transit van Right a UPS or a FedEx size truck. It's more like the I8 Somewhat bigger and the gen set is really the size of the gen set is Really custom tailored to the application and so our philosophy on range extension is that it's like an insurance policy Because for most of these applications. Oh, okay. Yeah, they they travel the same distance every day Yeah, they start and stop at the depot at night Yeah, but in certain instances like for instance, we'll start what's called peak season Yeah for parcel delivery right after Thanksgiving where you have extended hours, right that in that instance The range extender is a very cost-effective option To allow fleets to extend the range for specific and discrete periods of time throughout the year Well, that's interesting because the i3 I always think of it as a life belt I mean, that's really a get-you-home range extender. You're not supposed to use it. It's there for sort of range anxiety really But other range in extenders get yes used rather more so it's sort of spectrum of application. I suppose so the uniques of those vehicles are What are you a major player or minor player or what? So we are very well positioned in the u.s. Market because we develop And manufacture our vehicles from the ground up And historically in this segment of the market A lot of the alternative energy electric vehicle makers are conversion companies Meaning they purchase the diesel chassis They remove the components and then they put the electric Yeah For us because we are now moving to scale and we have a full manufacturing facility in indiana Which can produce up to 60,000 vehicles a year, right? We're able to really leverage tier one suppliers Designed from the ground up and we're very well positioned with large especially large global fleets Like ups and others to be able to produce at a very competitively priced Point. Oh, right So these are these mainly cities or city vehicles rather than Center of the town ones You know that like the ups would have pure electric ones, wouldn't it for the local but you don't do those We do actually we do all right our sweet spot for delivery vehicles and work fans is primarily urban use All right So the average on for instance if if i'm delivering packages as an independent supplier for amazon I show up at work at the depot at 7 a.m load my packages Probably drive 10 to 12 miles before I start delivering make 200 stops Deliver 300 packages and then come back to base and they're brilliant for the stop start compared with the diesel Yes, I I had a bit of a laugh on me in london the other day. I was taking picture of a ups battery Big big battery van and I just looked down to fiddle with my Camera on my phone and I looked up and it was gone and I hadn't heard it go So I didn't get my photograph, but yeah, they're coming in very fast. I think now I think you you have other things you do. Are you involved in aircraft or something? Tell us do So the same foundational technologies Battery systems motor controls and software are really a platform that can be applied Both to vehicles as well as aerospace right and so we've established a Of what will be a standalone company called surefly Which is our electric vertical takeoff and landing helicopter or e-v-t-o-l right and in that instance Helicopters are inherently unsafe. They don't have redundancy systems Yeah, and so by utilizing this range extended or in this case hybrid electric approach Using a gas generator with all electric backup And a ballistic parachute. We believe we can create the safest easiest to fly Helicopter on the planet and that's autonomous with no one in it. It's for deliveries or something So the payload is 400 pounds right so two people or one person plus cargo The initial range estimate is 70 miles and in terms of the Pilot versus non-pilot the initial version that we're taking through FAA certification now We'll have a pilot. Wow, but ultimately it's fly by wire. So we have the option to move to autonomous I see so Do you think that will be safe in cities? You'd need longer the right that range is before you use the range extender or With the range so to clarify in this instance the gas generator powers the vehicle So there is no range extender. All right And so the app the early applications and interests that we have from customers are really in agriculture Certainly the military in more rural Instances where you don't have the option. No, no, absolutely. Yeah. And so I think it will be some time Certainly uber elevate is leading the consortium of thinking and imagining urban transit. Yes, but that will take some time Yes, we worry a little bit about some of these proposals like in dubai. They say they're bringing in taxes That's sometimes called flying cars or whatever they are but the point is their vertical takeoff And they seem to have a endurance of only about 30 minutes And so the safety margin is way too thin over a city I would be very surprised if a city would allow such a thing I think, you know, it's back to the drawing board. They need to get a bit better than that to be allowed in a city They might have to have proper safety margins and maybe Range extenders there can be the safety margin or something But in the meantime where we had here last year terra fugia are opening and shutting there holding wings of the Car, but of course it's it's an internal combustion engine It has to be you're talking about half a megawatt or a megawatt or that's right And in that case, it's not even vertical takeoff, but it's it's a very neat device so How do you see the company going in future? You're you're on the land and you're in the air, but you're not off road Correct. Yeah, so the next One to three years on the vehicle side Next year is really about the release of our next generation work van Which we call the n gen series And we have we are one of the five finalists for the us postal service Next generation vehicle delivery programs. We're active in that space with the smallest cube And then we have multiple sizes That will be applied and are of interest to a number of different fleets. They're operating Whether it's a ford transit or or sprinter van or some of the larger heavier duty vans And that's really the next step Following that we have also a range extended electric pickup truck half ton That has received quite a bit of interest from particularly fleets working in the utility sector You know so construction and we've we've to date we have almost 300 million dollars in letters of interest pre-orders That's interesting. Yes So I know utilities often want power when they arrive. So the beauty of a hybrid compared with a pure electric is that You you've got yourself an electricity generator when you arrive to do whatever you're going to do Yeah, yeah, so we've we've incorporated a lot of features that are really focused on commercial and fleet use Including exportable power. So 7.2 kw you can plug in your tools and your generator. Yeah, all right So we have that as a feature and the range extender on this particular vehicle is quite is larger Because what we heard so for instance a utility in this country Maybe 250 days out of the year. They're only operating and driving 60 miles a day But if you're going to disaster relief For hurricanes or other natural disasters, you need to be able to drive across the country And so this particular range extender will be large enough So the first 75 to 80 miles will be all electric and then you can continue to fill the gas tank On the range extender and have a limited range to complete your mission So your advantage is in design and you're also able to expand your business by selling power trains. Yes What does that mean boats or what? Well at this moment we're we're sticking to trucks. Yeah, I mentioned the sure-fly We're planning on spinning that out. Yeah as a separate business because it does merit its own team And there are certain sets of investors that are particularly interested in that space And so for now we have our hands full and there's yes. Yes hundreds of millions of dollars market opportunity Yeah in that space. So in all between the different sites, how many people roughly? Um, sorry to clarify. How many how many employees have you got? So we have approximately 150 employees. Okay, and that includes manufacturing and we will scale up over time Mainly in indiana. Uh, it's principally actually right outside of Cincinnati in loveland, Ohio And then we have a small team for manufacturing assembly in indiana. Oh, great Well, thank you very exciting an interesting company up and coming Starting to worry the big people I think And I wish you well. So thank you very much fascinating information. See you again. Such a pleasure. See you again. Take care. Bye. Bye. Bye