With the large USPS contract seen as just a bonus, investors will do well in this stock with a market cap at only $3 billion and an annual market opportunity topping $18 billion. 23 awarded Oshkosh, a Wisconsin-based maker of military trucks, a 10-year contract for as many as 165,000 vehicles worth as much as 6 billion. It also stipulates that the USPS should make an initial 482 million. It’s also the only fully electric player in the mix and that is important because it makes the trucks cheaper to run. The 6 billion deal would see the defense contractor produce up to 165,000 new mail trucks. As long as the company continues to make progress in attracting orders outside of the USPS contract and expanding capacity, the stock will remain a strong growth story. 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. The key investor takeaway is that Workhorse will remain a highly volatile stock in the EV space. In addition, supply chain issues with a battery supplier isn’t helping the recent slow production ramp. The company currently has a cash balance of only $260 million, so Workhorse is going to need to grow manufacturing capacity and possibly work with Lordstown Motors to build out capacity. More contracts and even winning a portion of the USPS deal will set up Workhorse for a bright future in the EV delivery truck sector without needing to hit these initial financial targets. Investors should expect the EV delivery truck company to fail to reach these analyst revenue estimates, while the stock could still rally.Īs investors have seen with Tesla over the years, the stock will trade based on the company making progress towards the growth story. Musk sells a few shares to pay taxes on options it's sheds 300 billion. To reach these estimates, Workhorse would either have to hit a higher ASP (average selling price) or to actually deliver up to 2,800 vehicles. This bull market is in the final throws of madness. Postal Service(USPS) said on Wednesday it. Postmaster General Louis DeJoy and other U. The company doesn’t even expect to deliver 450 vehicles per quarter in 2021 after failing to reach an original meager goal of 300 to 400 vehicles in 2020.Īnalysts have aggressive 2021 targets with revenue estimates of $139 million. Workhorse stock may not recover quickly from the USPS contract loss. Why did Workhorse not get the USPS contract The unattended vehiclethen rolled down a slope into the ditch. Oshkosh makes military vehicles, fire trucks and ambulances. That’s higher than Workhorse’s peak market. The Loveland, Ohio-based Workhorse was stunned last week when the Postal Service awarded a 10-year contract initially worth 482 millionto the Wisconsin company. The contract has a total value of 6 billion. Combined with the recent rollout of the Ryder contract, Workhorse is far less reliant on the USPS contract.ĭespite the work with the USPS for years now, Workhorse is still very unproven as far as an EV manufacturer. It was easy to see the USPS deal as potentially transformative for Workhorse and for WKHS stock. The order follows an initial 500 C-1000 delivery vehicle order from Pritchard Companies, which has developed a distribution network of commercial vehicles with sales topping 30,000 units annually. A particular prospect that raised its share price from less than 2 in March to more than 40 this month was its bid for a big contract from the United States Postal Service to start replacing the. Amid heightened volatility, the stock 70 USPS Mail Truck Grumman LLV. The deal starts in July and runs through 2026 and would have a value of over $300 million based on a truck ASP of $50,000. Wood could be betting that Workhorse will still win the contract and the market. The company is also amid a management rejig with two of its top executives, including finance chief Steve Schrader, leaving the company in late September.While the government continues to delay the awarding of the estimated $6.3 billion contract, Workhorse signed a deal with Pride Group Enterprises for 6,320 C-Series all-electric delivery vehicles. Postal Service earlier this year to award a multibillion-dollar, 10-year contract to Oshkosh Defense to manufacture a new generation of postal delivery vehicles. In June, Workhorse had challenged a decision by the U.S. Workhorse disclosed the investigations in a regulatory filing, adding that it has not received any subpoena or request for documents from the DoJ. 5, the company had received SEC's letters in mid-October and earlier this month seeking information related to the issue. While Workhorse was orally informed of the DoJ investigation on Nov. Securities and Exchange Commission related to trading in the company's securities leading up to the award of a U.S. Workhorse if the company wins the USPS contract has visibility to achieving that market share within the next few years in the U.S. Nov 8 (Reuters) - Electric van-maker Workhorse Group (WKHS.O) said on Monday it was being investigated by the U.S.
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