1125 N. Charles St, Baltimore, MD 21201. Workhorse Vs. Nikola Stock. None of them will like an all-electric solution, which is the one offered by Workhorse, as the preferred choice for the USPS contract. As well, EVs have certain technological eccentricities that require a different approach throughout the manufacturing process. Also, Workhorse has a 10% stake in Lordstown Motors (NASDAQ:RIDE), led by President Trump’s close friend. The missed deadline by USPS … Personally, that’s not much. Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Postal Service delayed its decision yet again to award a $6.3 billion contract. But then USPS would have to have a lot of charging stations installed and from what I have read their truck only has 100 mile range. In terms of overall savings, the native attributes of EVs – such as regenerative braking – make the platform compelling for last-mile solutions. Then again, if you don’t like taking a lot of risks, there is always Nio and Tesla. Workhorse (NASDAQ:WKHS) stock suffered a 21.5% drop after the U.S. Nasdaq Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. If USPS decides to go with WKHS you need to have in mind that Workhorse would be obliged to give a guarantee for the fulfillment and actually be able to deliver 180,000 NGDVs over five to seven years. According to Kim Frum, a spokesperson for the Postal Service, the decision is due to the novel coronavirus pandemic. Beyond the question marks over the USPS contract, a report from GuruFocus.com notes that Workhorse insiders, including CEO and president Duane Hughes, have been selling their shares of WKHS stock. Executives can sell their stake for a number of reasons. But Pounce on the Lucid Motors Merger, 7 Dividend Aristocrats That Will Outlive Us All, Top SPAC Merger News This Week: Lucid Motors, EVgo, Joby Aviation and 7 More Hot SPACs, CCIV Stock: Rumors of a Lucid Motors SPAC Merger Delay Spur Pullback, 7 Growth Stocks in The S&P’s Hottest Sectors That Are Primed to Explode. In between, a lot of lobbying will take place. Without the USPS contract, Workhorse loses a lot of that visibility … 1125 N. Charles St, Baltimore, MD 21201. Except the problem is that Workhorse is a “brainer” as evidenced by the USPS delaying the contract decision to sometime in the second fiscal quarter of 2021, or the first quarter of 2021 in calendar terms. Further, because EVs have fewer moving parts, they are more reliable, all other things being equal. The USPS is in the process of replacing its iconic yet aging white right-hand-drive delivery trucks and Workhorse is the only contract bidder left offering an all-electric option. USPS is replacing the white, right-hand drive, and delivery trucks with the Next Generation Delivery Vehicle (NGDV). The stock fell over 50% in the process. “I think it’s a great opportunity for us. Aside from the USPS contract and the general enthusiasm surrounding the EV sector, there aren’t many stock catalysts. While also issuing a favorable verdict, Cowen analyst Jeffery Osborne said he wasn’t surprised by the delay. 5 Reddit Stocks That Could Be the Next GameStop >>>, Why Workhorse Group Isn’t a Shoo-in for the USPS Contract, will buy 6,320 C-Series all-electric delivery vehicles, EVs driven in hot temperatures degrade their batteries conspicuously more, EV tires are different from standard counterparts, The 7 Best Dividend Stocks To Buy On The Market Today, Louis Navellier and the InvestorPlace Research Staff, 3 EV Charging Stocks to Buy for Huge Gains in the 2020s, Stock Market Live Updates Tuesday: Earnings, Social Media Buzz Steal the Show, Don’t Buy CCIV Stock Now. If the postal service truly adopted a long-term commitment to mail delays, then not updating its fleet certainly fits the script. Despite many other reasons to consider the investment narrative of electric delivery vehicle manufacturer Workhorse Group (NASDAQ:WKHS), it’s inevitable that most speculators have focused on its potential of winning the U.S. Also, any positive or negative news on the USPS contract can tilt the scales one way or another. quotes delayed at least 15 minutes, all others at least 20 minutes. A few months back, several analysts felt the contract would go to Ohio-headquartered Workhorse. The decision is now expected in the second fiscal quarter of 2021. His passion is to help the average investor make more informed decisions regarding their portfolio. But it has the ability to build up its operations. Giving the nod to Workhorse, therefore, makes sense. However, we didn’t get a decision by the election. Considering that the current LLV dates back to 1987, the USPS cannot just think about the immediate sentiment. A s the market focuses on some of the major electric vehicle companies, Workhorse (WKHS) is slowly building an order book in the last-mile delivery van … Instead, the executive team is busy evangelizing the benefits of EVs to replace combustion-engine based delivery trucks and vans. Better yet, the disclosure provides stakeholders substantial confidence that management isn’t banking on any single contract materializing. However, with Workhorse likely to win, it’s not a bad bet to take. All rights reserved. Unfortunately, it’s difficult to say. 2021 InvestorPlace Media, LLC. My colleague Josh Enomoto also brings up an excellent point. Article printed from InvestorPlace Media, https://investorplace.com/2020/12/wkhs-stock-will-continue-to-live-and-die-by-the-usps-contract/. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. 2021 InvestorPlace Media, LLC. One of them is growing public sentiment toward clean energy solutions. In addition, sentiment was baked into WKHS with contract-winning assumption. The Next Generation Delivery Vehicle (NGDV) will replace the Grumman Long Life Vehicle for the USPS in the near future. Workhorse is a contender to provide a fleet of next-generation delivery trucks for the USPS, worth as much as $6.3B billion as the postal service begins to retire the trucks in its fleet. Combined with zero emissions, WKHS stock seems the no-brainer proposition. If we divide 180,000 by 7 that would be around 25,000 vehicles per year. Workhorse Group Inc (NASDAQ: WKHS) could be awarded the Next Generation Delivery Vehicle contract by the U.S. Copyright © WKHS surged 12.62% on Friday as Roth Capital analyst … At the time, many believed that since Ohio is a swing state, the Trump administration will award the contract to the company as an election sweetener. News Trucking Analysts’ patience wearing thin with Workhorse delays Battery supply issue and lack of deliveries lead to tough questions. “It is important to note that there have been several delays in this process over the past four years,” He rates Workhorse shares Buy and has a $23 price target for the stock. It was widely expected that USPS contract decision will take place on October 13, but Workhorse today announced that it has entered into a note purchase agreement under which it will sell almost $200M aggregate principal amount of its 4.0% Senior Secured Convertible Notes due 2024 to two institutional lenders.