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. Let’s Talk About Drones So, let’s get off of the topic of the USPS contract for a moment. However, with Workhorse likely to win, it’s not a bad bet to take. However, we didn’t get a decision by the election. Savings on commercial vehicles accumulate faster than passenger vehicles, making the all-electric option attractive. The Next Generation Delivery Vehicle (NGDV) will replace the Grumman Long Life Vehicle for the USPS in the near future. But this fact becomes extremely obvious under stop-and-go driving conditions. Selling doesn’t necessarily mean bearish. Now, it’s only fitting that the incoming Biden administration settles in before the verdict. Article printed from InvestorPlace Media, https://investorplace.com/2021/01/wkhs-stock-no-shoo-in-for-usps-contract/. Granted, it’s a small company. In July, Tesla (NASDAQ:TSLA) overtook Toyota (NYSE:TM) to become the world’s most valuable car brand. However, the delay highlights the risk associated with investing in Workhorse. It will purchase about 180,000 vehicles will be purchased over five to seven years. The constant acceleration and deceleration, combined with extended periods of sitting still, contributes to the last-mile problem in logistics. 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. quotes delayed at least 15 minutes, all others at least 20 minutes. Alan Adler Monday, November 9, 2020. Joe Biden calls for a 100% clean-electricity standard by 2035 and investing $2 trillion over four years in clean energy. Shares of Workhorse Group (NASDAQ: WKHS) are down in after-hours trading Tuesday on news of a delay for the long-awaited U.S. USPS is replacing the white, right-hand drive, and delivery trucks with the Next Generation Delivery Vehicle (NGDV). 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. Although the Democratic ticket won on a clean energy ticket, domestic politics is seldom a zero-sum game. Combined with zero emissions, WKHS stock seems the no-brainer proposition. Here is why. Benzinga recently had a chance to catch up with Workhorse CFO Steve Schrader on the status of the USPS contract … With the USPS contract, Workhorse gains immense visibility to turn into the Tesla (NASDAQ: TSLA) of delivery vans. It also has the option of using the Lordstown plant, which has a 6 million-square-foot maximum capacity. Despite such a poor performance, Workhorse currently trades at a market cap of more than $2.5 billion simply due to the fact that the USPS contract is still … Nasdaq According to Trucks.com, the specialist electric vehicle manufacturer stated that “Pride Group Enterprises will buy 6,320 C-Series all-electric delivery vehicles. quotes delayed at least 15 minutes, all others at least 20 minutes. Unfortunately, it’s difficult to say. If we divide 180,000 by 7 that would be around 25,000 vehicles per year. The delay in awarding the USPS contract has done a great deal of damage to WKHS stock. For instance, EV usage data indicates that EVs driven in hot temperatures degrade their batteries conspicuously more than vehicles driven in temperate climates. Workhorse Group Inc (NASDAQ: WKHS) could be awarded the Next Generation Delivery Vehicle contract by the U.S. Postal Service contract.What Happened: The USPS … Workhorse is one of just a handful of companies left in the race but is up against the likes of established automakers like Ford (NYSE:F). Lafferty analyst Jaime Perez, who is bullish on the electric truck startup. Further, because EVs have fewer moving parts, they are more reliable, all other things being equal. I want to take a position closer to the contract announcement. WKHS surged 12.62% on Friday as Roth Capital analyst … 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. Copyright © Without the USPS contract, Workhorse loses a lot of that visibility … However, I think if you’re profitable on the company, you may want to mitigate some risk by taking some gains off the table. Capacity issues are often discussed as the main thing going against Workhorse. Commercial vehicles are also easier to maintain, and they can be charged centrally at company-owned facilities. All rights reserved. If the postal service truly adopted a long-term commitment to mail delays, then not updating its fleet certainly fits the script. Hence, many are excited about the possibility of WKHS stock as the underlying company is the greenest. A West Coast-based investment banking firm predicts Workhorse Group Inc. will win the $8.1 billion U.S. Postal Service as early as the second half of … The energy lobby is one of the largest and most powerful in Washington, D.C., a fact not lost on my colleague. The U.S. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Not surprisingly, WKHS stock jumped dramatically higher on the news. 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. “Because of Covid, the EV industry has been hampered with both personnel and supply constraints,” said R.F. When you consider other angles, Workhorse might not have the inside track to the USPS contract as previously hoped. Also, Workhorse has a 10% stake in Lordstown Motors (NASDAQ:RIDE), led by President Trump’s close friend. Postal Service contract to replace its aging long life vehicle (LLV) fleet. 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. The United States Postal Service (USPS) gets blamed for a lot of things. Regardless, I believe Workhorse is in a better position than the rest of the finalists to win. On a year-to-date basis, shares are up over 26%. Many respondents also expressed confidence, although admittedly speculative in nature, Workhorse will ultimately win the USPS order come the second fiscal … I wouldn’t base your entire decision of WKHS stock on the insider selling. The biggest news of the month was that the U.S. The deal with the Ontario, Canada-based truck leasing and sales company is split between Workhorse’s C-1000 and C-650 models and is subject to various production and delivery conditions.”. 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 … Nikola hasn’t sold a vehicle, against more than five million sales a year for Ford (NYSE:F).

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