It’s also the only fully electric player in the mix – and that is important because it makes the trucks cheaper to run. The USPS program could award up to $6.3 billion in contracts to one or multiple bidders, and is an opportunity for Workhorse to construct 165,000 new mail trucks. (Not to be confused with UPS which is a parcel delivery company on the stock market that Workhorse is already working with.) USPS conducted a bid to renew their huge fleet of aging mail trucks and Workhorse is still in the mix. Ok, so what’s all the suspense about? And why are some investors hoping the stock price will double or even triple next month (or even sooner)?Īs I wrote in the Workhorse overview post, Workhorse is one of the only three finalists bidding for a gigantic contract with USPS (The US Postal Service). Oh and yes, I own Workhorse stock, so I’m biased. This story really has it all – Trump, the 2020 US presidential election, corruption and manipulation at the highest level… I’m not advising you to buy, sell or hold the stock, just giving you all the information – knowledge is power! Things are getting more and more interesting by the day, so I decided to give you an in-depth overview of why investors are so restlessly looking forward to ONE SINGLE announcement, hoping Workhorse stock would double, triple or quadruple in the next month or so – that is IF we get the right news. And some investors are expecting the stock to Workhorse is a US electric vehicle company that could be used as a political powerplay by Trump to secure votes in the US 2020 Presidential Election. Some of its EV competitors, including several with significant valuations, are still at the prototype stage, with no commercial vehicle sales whatsoever.Let’s talk about the chances of Workhorse winning the $6 billion USPS contract and what the hell is going on.Ĭan we make an educated guess on whether Workhorse will get the contract?ĭon’t know enough about Workhorse? Read my in-depth review of Workhorse’s business that I wrote just last week. One final element potentially weighing in Workhorse's favor is it actually has physical vehicles on the road. While this represents an approximate $52 million loss from the original purchase price, the sale will add to the company's $156.6 million in cash, enabling it to continue operating longer and potentially ramp up production of its improved vans along with its drone technology. According to its second-quarter press release, the sale will give it $79 million in net proceeds. Workhorse also sold 72% of its shares in EV start-up Lordstown Motor Corporation ( RIDE -3.28%). It states these improvements are "primarily related to vehicle dynamics to increase the vehicles' payload capacity," which could make the vans more appealing to future customers. Workhorse says it's working on "enhancements" to the C-1000's design based on feedback. While the recall is partly to improve safety features, the company notes there are no customer safety complaints. So, too, could the recall and suspension of C-1000 production. Improving potential future working relationships with the government, and halting the expense of a likely futile complaint, could be positive steps for the company. He declared his belief that "the best way for us to work with any governmental agency is through cooperation, not through litigation." He added by "withdrawing our protest, we can also better focus our time and resources on initiatives that we expect will be more productive." He led the decision to terminate the USPS contract complaint. Possibly more significantly, Dauch is taking action on several fronts. The company both recalled the C-1000s currently on the road and suspended upcoming deliveries. The C-1000, an update on Workhorse's earlier C-650 design, is named for its 1,000 cubic feet of cargo space, while retaining the same 100-mile range. Next, Workhorse announced recall of 41 of its C-1000 electric last-mile delivery vans on Sept. Subsequently, it dropped its legal complaint against the government, after Oshkosh filed a motion asserting "Workhorse's failure to complete the administrative appeal process is fatal to its case." Why the stock market is negativeĪmong other troubles, Workhorse recently lost a multibillion-dollar contract to build electric delivery runabouts for the Postal Service to industrial vehicle maker Oshkosh Corporation ( OSK -2.56%). While the company is undoubtedly having difficulties, several recent events hint at a turnaround chance within the next year or two and make Workhorse worth watching - though perhaps not buying right now. Investor confidence sank recently on the recall of several dozen Workhorse delivery vans for upgrades. Following failure to win a huge USPS delivery vehicle contract, electric vehicle (EV) maker Workhorse Group ( WKHS -5.67%) is seeing its share prices crash even lower.
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