On a year-to-date basis, shares are up over 26%. A Wall Street analyst downgrade has investors selling off as skepticism on Workhorse resurfaces. Workhorse’s odds of winning the Postal Service contract may be nil. As far as a timeline’s concerned, the U.S. One of them is growing public sentiment toward clean energy solutions. 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 … Winning the Postal Service contract would be a big deal for Workhorse, which would subcontract production to Lordstown Motors Corp. (NASDAQ: RIDE). Shares of Workhorse Group (NASDAQ: WKHS) are down in after-hours trading Tuesday on news of a delay for the long-awaited U.S. 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 © 2021 InvestorPlace Media, LLC. Benzinga does not provide investment advice. According to Trucks.com, the specialist electric vehicle manufacturer stated that “Pride Group Enterprises will buy 6,320 C-Series all-electric delivery vehicles. Postal Service contract for its next-generation mail trucks. 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.”. Certainly, recent news has bolstered the idea that WKHS stock is more than just a one-trick pony. That could add more cost over the intended long life of these next-generation delivery vehicles. When you consider other angles, Workhorse might not have the inside track to the USPS contract as previously hoped. All rights reserved. 1125 N. Charles St, Baltimore, MD 21201. Instead, the executive team is busy evangelizing the benefits of EVs to replace combustion-engine based delivery trucks and vans. Further, because EVs have fewer moving parts, they are more reliable, all other things being equal. America’s #1 Stock Picker Reveals His Biggest Recommendation of 2021... On Feb. 23, Luke Lango will reveal his #1 tech pick of the year… details on the hyperscale opportunities on the cusp of changing the world… and how YOU can get in on the action. Earlier this month, Workhorse won its largest delivery truck order, setting its 2021 off on the right note. The constant acceleration and deceleration, combined with extended periods of sitting still, contributes to the last-mile problem in logistics. Postal Service announced another delay in its efforts to award a more than $6 billion contract to replace its fleet of aging mail trucks. WKHS Stock News: Workhorse Group Inc freefalls after hours as USPS delays contract once again NASDAQ:WKHS fell 23% after hours on the USPS announcement. 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. At scale, 7% could mean a world of difference for a fleet owner like the USPS. Workhorse Group Inc. tumbled as much 25% Wednesday, leading the sector lower, after reports that the U.S. Postal Service truck contract worth $6.3 billion may be awarded in 2020. Better yet, the disclosure provides stakeholders substantial confidence that management isn’t banking on any single contract materializing. 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For instance, EV usage data indicates that EVs driven in hot temperatures degrade their batteries conspicuously more than vehicles driven in temperate climates. However, I think if you’re profitable on the company, you may want to mitigate some risk by taking some gains off the table. Postal Service to award $6.3B contract for new mail truck this year. Nasdaq Postal Service expects to make a contract decision about Workhorse replacement vehicles in the second fiscal quarter of 2021. In 2015, the Postal Service began the process of replacing its aging fleet. In addition, sentiment was baked into WKHS with contract-winning assumption. For now, the Postal Service is looking to gather up proposals for its new delivery truck. As well, EVs have certain technological eccentricities that require a different approach throughout the manufacturing process. This decision has been delayed multiple times already and now puts pressure on Workhorse, one of three finalists for the contact. From my purely anecdotal observation, most people (well, pretty much everyone, save for a few bears) believe that Workhorse has the USPS contract in the bag. The … WKHS Price Action: Shares of Workhorse fell 14% to $21.75 in after-hours trading. On the date of publication, Josh Enomoto held a long position in F stock. The USPS has been in talks with companies like Workhorse and Ford since 2018 and has been working closely with them for testing. What Happened: The USPS is delaying its contract decision on the USPS replacement vehicles, according to Trucks.com. quotes delayed at least 15 minutes, all others at least 20 minutes. Postal Service further delayed a contract for new mail trucks. 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. 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. It must take into account all factors, including reliability and dependability throughout the whole U.S. landscape. Schrader also provided an update on the $6 billion U.S. U.S. Years behind schedule, the U.S. Combustion or not, tires do not last forever. Executives can sell their stake for a number of reasons. Throughout much of last year, WKHS stock was the beneficiary of speculation that Workhorse will get the governmental greenlight. Postal Service contract to replace its aging long life vehicle (LLV) fleet. Additionally, as we discussed in a previous post, investors appear to be banking on the probability that Workhorse will become a part of a $6 billion U.S. Postal Service process to award contracts for new mail trucks. The proposal deadline is set for March 27 th, however, an extension is also a possibility. Shares of Workhorse Group (NASDAQ: WKHS) are down in after-hours trading Tuesday on news of a delay for the long-awaited U.S. LORDSTOWN — Lordstown Motors Corp. could see $800 million in potential revenue if Cincinnati-based electric vehicle maker Workhorse Group lands an $8.1 billion contract to supply the U.S. I wouldn’t base your entire decision of WKHS stock on the insider selling. All rights reserved. From the onset of talks with GM, the sprawling 6.2 million-square-foot facility was viewed as a “potential competitive advantage” to landing the $6.3 billion contract with USPS, said Workhorse CEO Duane Hughes. But shares could hold steady for quite some time. Workhorse's USPS Bid: By the end of the year, the United States Postal Service is expected to announce the winner of its Next Generation Development Vehicle contract worth $6.3 billion. It has skyrocketed 701% so far this year amid the mania for electric vehicle stocks. Considering that the current LLV dates back to 1987, the USPS cannot just think about the immediate sentiment. All rights reserved. Postal Service's next generation delivery vehicles, according to a Friday report from investment banking firm … Click here for options trades from Benzinga, Why Barstool, MGM Could Be Big Winners With Michigan Online Sports Betting, Musk Wants Tesla Employees To Pinch Pennies For Profitability. Combined with zero emissions, WKHS stock seems the no-brainer proposition. Postal Service will soon award a $6.3 billion contract for a new mail truck design in 2020, and some of the finalists have already leaked online.. What’s going on? Postal Service again delayed a decision to award contracts for new electric mail trucks. Is this something investors should be worried about? The USPS contract is a big deal for the company. It licensed Workhorse technology in exchange for granting Workhorse … Irwin cut his share-price target to $27 from $33. Even though Workhorse has other encouraging revenue channel opportunities, a disappointment with the USPS will almost surely hurt its shares in the near term. The market was expecting Workhorse to be in pole position for this contract since 2018 as it was the only company in the running with an all-electric product and this sent Workhorse … Workhorse is one of four remaining participants bidding for the contract. Eyeballing the data, it looks to me that there’s a 7% degradation difference. “Primarily just because of (the plant’s) size and so on, its ability to push through vehicles out of that plant — not … The Next Generation Delivery Vehicle (NGDV) will replace the Grumman Long Life Vehicle for the USPS in the near future. The U.S. And the more this is delayed, the likelier that WKHS stock is in trouble relative to the sentiment effect. Copyright © Plus, USPS delivery vehicles go through a lot, covering vast amounts of terrain across different environments. Indeed, it’s the only company among the three contests vying for the USPS contract – the others are Karsan and Oshkosh, which are teamed with Morgan Olson and Ford (NYSE:F), respectively – that is all-electric. Workhorse is bidding to replace thousands of postal vehicles—most notable the white, right-hand-drive delivery trucks. Perhaps they want to buy a new place or the latest exotics from Ferrari (NYSE:RACE). Here, the EV platform, while offering myriad benefits, also has multiple questions. Proposals were due by mid-July and a decision was due 90 days after that. However, the USPS must also think about another kind of green (the economical variety), which makes the Workhorse narrative complicated. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Article printed from InvestorPlace Media, https://investorplace.com/2021/01/wkhs-stock-no-shoo-in-for-usps-contract/. It appears that the last time an insider was bullish was in 2019. 1125 N. Charles St, Baltimore, MD 21201. Postal Service contract. Hence, many are excited about the possibility of WKHS stock as the underlying company is the greenest. New U.S. Postal Service (USPS) contract. For instance, GreenCarReports.com states that EV tires are different from standard counterparts because they must accommodate the extra load of heavy battery packs. Shares of Workhorse are up over 700% in 2020 and investors could sell the delay news. However, this is not the first time that the USPS has delayed this program – not by a long shot. Not surprisingly, WKHS stock jumped dramatically higher on the news. And they are not cheap to replace. WORKHORSE DIDN’T GET THE USPS CONTRACT.. TODAY. To cut down on that expense, Workhorse has proposed an all-electric solution. The decision on who the contract will go to had already … Workhorse Group ( WKHS) - Get Report shares fell after a report that the U.S. In terms of overall savings, the native attributes of EVs – such as regenerative braking – make the platform compelling for last-mile solutions. On the other hand, buying shares usually indicates confidence and it’s peculiar that there is a dearth in this avenue. As you know, combustion vehicles aren’t the most efficient transportation platforms. Everyone who is anyone was expecting some kind of news on Monday morning when it comes to Workhorse (WKHS) stock. The earliest new mail delivery trucks will replace the U.S. Another event also impacted Workhorse stock Friday. But this week, the US Postal Service pushed back its plan to award an expected $6 billion in contracts for the next-generation mail truck. ... WORKHORSE DIDN’T GET THE USPS CONTRACT.. TODAY. Basically, it’s the last leg of a parcel’s journey that is the costliest. Workhorse Group is one of the finalists along with Turkey-based Krsan and Oshkosh Corporation (NYSE: OSK). “Amid continuing Covid-19 concerns, and in order to provide for capital investment activities and required approvals, the program schedule has been revised and a decision is now planned for quarter 2 of fiscal year 2021,” the USPS said in a statement. © 2020 Benzinga.com. But this fact becomes extremely obvious under stop-and-go driving conditions. Personally, that’s not much. Postal Service contract. 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. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The contracts include the production of roughly 180,000 delivery vans. This decision has been delayed multiple times already and now puts another layer of pressure on Workhorse, one of three finalists for the contract. Overall, three companies are still in contention for the $6.3 billion 165,000 vehicle award. Unfortunately, it’s difficult to say. The USPS told Trucks it expects to make a decision in the second fiscal quarter of 2021. Therefore, by the end of March, we should get a decision. LMC is an electric pickup truck maker run by former Workhorse CEO Steve Burns. Workhorse (NASDAQ:WKHS)-21.5% post-market after Trucks.com reports of further delays in the U.S. The stock recently traded at $24.38, down 8.28%. 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. Related Link: Workhorse CFO Steve Schrader On The Status Of The USPS Contract. Here’s a High-Risk, High-Reward Way to Play the Big Launch, Matt McCall and the InvestorPlace Research Staff, Churchill Capital IV Stock Is a Buy Despite Recent Run-Up, 10 Dividend Stocks Increasing Their Payouts, The Top 28 Cryptocurrencies to Know in 2021: BTC, ETH, DOGE and More, These 7 Semiconductor Stocks Are Actually Winning From the Chip Shortage. 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. 2021 InvestorPlace Media, LLC.