6000

Electric Vehicles

The number of EVs Workhorse produces annually

71830%

Dollars

Workhorse's revenue from electric-powered drones in 2020

37.2%

CAGR

Annual growth in Workhorse's EV delivery truck sales, 2018 - 2020

View Our Analysis

The Path to Drawdown: Electric Vehicles

The first electric vehicle (EV) prototype was built in 1828, but not being able to overcome the challenge of building a lightweight, durable battery with good range meant that internal combustion engines have dominated the automotive and transport landscape since the 1920s.

Today this landscape is changing. Thanks to supportive policies and falling costs, there are millions of EVs on the road. The difference in impact on the climate is remarkable. Compared to internal combustion engine vehicles, CO2 emissions drop by 50% if an EV’s power comes off the conventional grid. If powered by solar energy, emissions fall by 95%. Once households purchase EVs, the operating costs for those cars are often cheaper than gas-based cars, too.

What once used to be a roadbump for EVs - the problem of how far the car can travel on a single charge - is now much less of a concern. The average range of a battery EV produced in 2020 is about 217.5 miles, up from 124 miles in 2015.

Making this increase in mileage possible is the continuing development in battery capacity. Global EV battery capacity is expected to increase from around 170 GWh per year today to 1.5 TWh per year in 2030. At the same time, the cost of batteries is falling as their production reaches greater scale.

To be on the path to remain under 1.5ºC of warming, 100% of passenger cars and vans (p. 138) need to be running on electricity by 2050. That’s a jump from 5% of cars and 0% of vans in 2020, respectively. Accomplishing this overhaul of the transportation landscape means EV production and ownership need to continue to expand over the next three decades:

  • <::marker> 11 million EV cars and vans were on the road in 2020
  • <::marker> 2 billion EV cars and vans (100% of total global sales) need to be on the road by 2050

This would require a CAGR of 18.94% from 2018-2050

What We Want to See Improve

Ensure that Production Process is Smooth

Workhorse has run into production delays in 2020 when its battery supplier couldn’t deliver a few thousand units. Going forward, we urge Workhorse to work with multiple suppliers so that its supply chain, and ultimately its production are more diversified and resilient.

Track Sustainability Metrics

While we are excited about Workhorse’s expansion in the EV delivery fleet industry, we have no idea how its production and operations directly contribute to climate change or ecological sustainability. This is because they haven’t published any sustainability metrics. We particularly want to see data on their scope 1, 2 and 3 GHG emissions, avoided emissions, waste management and water use.

Set Clear Targets

Once these key metrics are collected and published, Workhorse should set clear targets for cutting emissions and enhancing ecological sustainability within a concrete timeline. This would allow climate-conscious investors to hold Workhorse accountable.

Related Electric Car Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

5.00%

Tesla Motors, Inc. (TSLA)

Tesla Motors makes EVs, battery energy storage, solar panels and solar roof tiles. They’ve done the most to make EVs cool

4.12%

Nio Inc. (NIO)

Nio Inc. makes EVs and integrate self-driving systems in EVs. They’re helping to electrify the transport system

2.55%

XPeng Inc. (XPEV)

XPeng makes electric passenger cars and SUVs with a long range and autonomous driving capabilities. They’re helping electrify transport

0.69%

Lennox International (LII)

Lennox makes high-efficiency heating, ventilation, air conditioning and refrigeration products, helping building managers cut energy use and emissions

0.66%

Arrival (ARVL)

Arrival makes commercial electric vans and buses through an innovative and efficient manufacturing process. They’re helping electrify transportation

0.30%

Fisker Inc. (FSR)

Fisker makes luxury and high-end electric cars and SUVs with a long range. They’re pushing the electrification of transportation

0.17%

The Lion Electric Company (LEV)

LEV makes electric trucks, school buses and minibuses in North America. They also make batteries and EV charging infrastructure, all key Drawdown solutions

0.16%

Proterra Inc. (PTRA)

Proterra offers electric transit buses, EV batteries and energy storage, as well as EV charging solutions - all key to electrifying transportation

0.12%

Canoo Inc. (GOEV)

Canoo makes a range of electric vehicles designed for families and commercial uses. They’re helping electrify transportation

0.05%

XL Fleet Corp. (XL)

XL Fleet makes hybrid and electric systems so that leading automakers can make more low and zero-emission vehicles

0.03%

Arcimoto, Inc. (FUV)

Arcimoto makes ultra-efficient, fun, pure electric vehicles for passenger transportation. They’re helping electrify transportation.

0.03%

Lightning eMotors, Inc. (ZEV)

Lightning eMotors makes electric commercial vehicles and charging solutions for those vehicles. They're helping electrify transportation

0.02%

Ayro, Inc. (AYRO)

Ayro makes EVs designed for narrow paths, college campus walkways, and last-mile delivery. EVs are key in electrifying transportation

0.02%

GreenPower Motor Company Inc. (GP)

GP makes electric commercial vehicles for delivery, public transit, schools, micro-transit, and shuttles. They’re helping electrify transportation

0.02%

Jiuzi Holdings, Inc. (JZXN)

Jiuzi Holdings and their subsidiaries make EVs for the Chinese market. They’re helping electrify transportation

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