Worksport to Open AI-Integrated Strategic Distribution Center to Boost National Sales Ramp Up

Rhea-AI Summary

Worksport (NASDAQ:WKSP) opened an AI-integrated strategic distribution center in Shreveport, Louisiana on December 8, 2025 to accelerate U.S. shipping and support national sales growth.

Management projects 1–2 day delivery for major markets, benefits for >50% of existing customers, and early logistics cost efficiencies of 10%–15% (≈12% in FedEx Zones 2–3). The site links to Worksport's AI routing and inventory systems and will serve as a pilot for further Southeast, Texas, and West Coast rollouts to drive faster B2B and B2C order fulfillment.

Positive

• >50% of customers expected to get 1–2 day delivery
• Early logistics cost efficiencies of 10%–15%
• ≈12% savings in FedEx Zones 2 and 3
• AI-enabled routing and inventory optimization for faster processing
• Facility to serve as pilot for targeted Southeast, Texas, and West Coast rollouts

Negative

• None.

Key Figures

Delivery time 1–2 days Expected shipping time for major markets from Shreveport facility

Cost efficiencies range 10%–15% Early modeled logistics cost efficiencies as volume increases

Customer base coverage More than 50% Portion of customers expected to get next-day or two-day shipping

FedEx zone savings 12% Modeled savings in FedEx Zones 2 and 3

Market Reality Check

$3.01 Last Close

Volume Volume 208,599 is below the 20-day average of 247,705 (relative volume 0.84). normal

Technical Shares at $3.01 are trading below the 200-day MA of $3.43 and 74.92% under the 52-week high.

Peers on Argus

WKSP was down 0.17% with modest volume, while key Auto Parts peers like REE (-7.32%), WPRT (-3.47%), GTEC (-0.93%), SYPR (-0.95%), and PRTS (-0.83%) also declined, suggesting broader sector softness but no scanner-confirmed momentum trend.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Online sales milestone	Positive	+4.3%	Record Black Friday e-commerce revenue and strongest online sales week.
Dec 01	Product launch	Positive	-2.3%	Launch of COR battery system and SOLIS solar array with initial orders.
Nov 25	Product rollout	Positive	+6.2%	HD3 tonneau cover sales to B2B dealers and upcoming DTC availability.
Nov 18	Operations expansion	Positive	+6.7%	Major Missouri facility upgrade to support SOLIS assembly and COR distribution.
Nov 13	Earnings update	Positive	-14.5%	Q3 2025 revenue growth and 2026 targets accompanied by continued losses.

Pattern Detected

Recent operational and product-launch news has often led to positive price moves, but major financial updates like Q3 earnings have seen sharp selloffs, indicating mixed alignment between good news and near-term price reaction.

Recent Company History

Over the past month, WKSP has released a series of growth-focused updates, including Q3 2025 results with 61% year-over-year sales growth and 31.3% gross margin on $5.0M net sales, followed by multiple product and expansion announcements (HD3, SOLIS, COR, and a Missouri operations upgrade). These drove several double-digit intraday swings, with some positive commercialization news aligning with gains and other strong metrics coinciding with declines. Today’s AI-integrated Shreveport distribution center fits this pattern of scaling U.S. infrastructure to support expanding B2B and B2C demand.

Regulatory & Risk Context

Active S-3 Shelf Registration 2025-11-17

$30,000,000 registered capacity

An effective Form S-3 shelf filed on 2025-11-17 allows Worksport to offer up to $30,000,000 of various securities, including up to $4,000,000 via an at-the-market program. This replaces a prior shelf and provides flexibility to raise capital over time, subject to limits tied to the roughly $30.3 million public float.

Market Pulse Summary

This announcement adds another piece to Worksport’s U.S. expansion, introducing an AI-integrated Shreveport distribution center expected to provide 1–2-day delivery for many customers and modeled cost efficiencies of 10%–15%. It complements recent product launches and facility upgrades aimed at scaling B2B and B2C channels. Regulatory filings, however, show ongoing net losses, a going concern warning, and an S-3 shelf for up to $30,000,000, so funding progress and margin trends remain key metrics to monitor.

Jargon Translator

at-the-market program

An at-the-market program is a way for a company to sell new shares of its stock gradually over time directly into the stock market, rather than all at once. This approach allows the company to raise money as needed while giving investors the opportunity to buy shares at current market prices. It helps manage the timing and price of new stock offerings, providing flexibility for both the company and investors.

going concern

A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.

reverse stock split

A reverse stock split is when a company reduces the number of its shares outstanding, making each share more valuable. For example, if you own 100 shares worth $1 each, a 1-for-10 reverse split would turn your 100 shares into 10 shares worth $10 each. Companies often do this to boost their stock price and appear more stable to investors.

AI-generated analysis. Not financial advice.

Expected improvements include 1-2-day delivery for major markets and early cost efficiencies of 10%-15% as volume increases.

WEST SENECA, NEW YORK / ACCESS Newswire / December 8, 2025 / Worksport Ltd. (NASDAQ:WKSP) ("Worksport" or the "Company"), a U.S.-based innovator in advanced manufacturing, clean energy technologies and automotive accessories, serving both consumer and reseller markets, today announced the opening of its new strategic distribution facility in Shreveport, Louisiana, designed to significantly enhance national shipping speed, lower logistics costs, and expand the Company's growing distribution reach.

The new facility is expected to support ongoing sales growth and margin expansion, in line with corporate growth initiatives detailed in recent Company updates. Management expects this distribution model to serve as pilot framework for the continued strategic U.S. sales and distribution expansion, including targeted Southeast, Texas, and West Coast distribution strategies.

Faster Delivery Across Major Markets, With Early Cost Efficiencies

The Shreveport facility positions Worksport closer to several of its fastest growing states, enabling materially faster delivery times compared to previous routing.

• More than 50% of Worksport current customer base is expected to benefit from the expansion by now getting next day or two-day shipping, with Texas and Florida seeing the largest gains.

• Early modeling indicates approximate cost efficiencies of 10-15%, with roughly 12% savings in FedEx Zones 2 and 3.

• Worksport emphasizes that its initial objective is shipping speed and cost savings are expected to increase naturally as volume scales.

The Company selected Louisiana for its central location within the Southeast shipping corridor and its proximity to major trucking routes feeding Texas and surrounding regions.

AI-Connected, Integrated Logistics

The Shreveport facility is connected directly to Worksport's AI-enabled environment, allowing automated routing, inventory optimization, and real-time shipment tracking. This integration supports faster order processing, improved accuracy, and future scalability.

Quote from Steve Raivio, Director of Sales

"The opening of the Southeast warehouse will now let Worksport resellers in the lower states to sell our product and get it on customers' trucks faster. The biggest barrier is always shipping times, and with the new warehouse we have largely eliminated this challenge. It is expected to help grow our current market substantially as we expand in the largest truck region in the USA. This location is also strategically placed to help with quicker ship times on B2C orders, keeping customers happier in an age where quick delivery is expected. We are excited about the opportunity this warehouse will bring to all aspects of sales for Worksport."

Looking Ahead

Management believes that performance data from the Shreveport facility will guide additional distribution rollouts as Worksport continues to grow. The Company anticipates that its logistics enhancements, combined with its scaling U.S. manufacturing capabilities, will support a broader national footprint across both B2B and B2C markets.

Join Worksport's Investor Relation Newsletter for all Future Updates: Worksport's Newsletter.

Contacts

Investor Relations, Worksport Ltd. T: 1 (888) 554-8789-128

W: investors.worksport.com W: www.worksport.com E: investors@worksport.com

Connect with Worksport Chief Executive Officer, Steven Rossi

Steven Rossi X (Twitter)
Steven Rossi LinkedIn

About Worksport

Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, portable power systems, and clean heating & cooling solutions. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the electric vehicle (EV) sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and Cold-Climate Heat Pump (CCHP) technology. Terravis Energy's website is terravisenergy.com.

Connect with Worksport

Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram, the links of which are links to external third-party websites, as well as sign up for the Company's newsletters at investors.worksport.com.

Social Media Disclaimer

The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company. Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, Securities and Exchange Commission (SEC") filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media. The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.

Forward-Looking Statements

The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "scheduled," "expect," "future," "intend," "plan," "project," "envisioned," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial situation may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our latest Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.

SOURCE: Worksport Ltd.

View the original press release on ACCESS Newswire

FAQ

What did Worksport announce on December 8, 2025 about its distribution network (WKSP)?

Worksport announced a new AI-integrated distribution center in Shreveport, LA to speed shipping and expand national distribution.

How fast will Worksport (WKSP) deliveries be from the Shreveport facility?

Management expects 1–2 day delivery for major markets, benefiting over 50% of current customers.

What cost savings does Worksport (WKSP) expect from the new Shreveport distribution center?

Early modeling shows 10%–15% logistics cost efficiencies, with about 12% savings in FedEx Zones 2 and 3.

How does Worksport (WKSP) use AI at the Shreveport facility?

The facility is connected to Worksport's AI environment for automated routing, inventory optimization, and real-time shipment tracking.

Will the Shreveport center lead to more Worksport (WKSP) distribution rollouts?

Yes; the company said the site will act as a pilot to guide additional rollouts targeting the Southeast, Texas, and West Coast.