Despite several catalysts, the biggest driver of WKHS stock’s recent surge is the potential USPS contract. Meanwhile, Ford/Oshkosh provides formidable competition. Roth Capital analyst Craig Irwin downgraded electric truck maker Workhorse Group (WKHS) - Get Report to neutral from buy after a U.S. Postal Service advanced mail truck contract, said the team has broken up. So far, there are over Workhorse 400 vehicles on the road. All rights reserved. As a result, the merger allowed for the new entity — Workhorse — to become a full-blown manufacturer. contract for a fleet of next-generation delivery trucks that could be worth as much as $6.3 billion after some 163,000 postal trucks currently in service are phased out. Tom Taulli (@ttaulli) is an advisor/board member for startups and author of various books and online courses about technology, including Artificial Intelligence Basics, The Robotic Process Automation Handbook and Learn Python Super Fast. Workhorse Group produces battery-powered electric vehicles. Workhorse Stock Could Skyrocket on a U.S. The company got its start back in 2007 and was called AMP Electric Vehicles. Besides the huge revenue boost, couriers and other delivery businesses are going to take notice. Thus, over the next decade, the number of electric delivery vans in the world will grow by leaps and bounds, creating an multi-billion-dollar U.S. electric delivery van industry. USPS blamed the delay on “the current Covid-19 pandemic and its impact on Postal Service and supplier operations”. ELECTRIC IS THE FUTURE AND THE FUTURE IS NOW, Long Only, Special Situations, Value, Research Analyst. While hydrogen fuel cell technology may begin to make inroads in the consumer market and eventually displace battery tech, it’s a smaller threat when it comes to Workhorse’s target market. And, perhaps most importantly, the technology and economics underlying electric vehicles has improved to a point where they are a viable and economically sensible alternative to gas-powered autos. The the winner of the USPS contract will firmly establish themselves as the unrivaled leader in the electric delivery van market — and will presumably be able to leverage that leadership position to win more contracts with other delivery companies over the next few years, and ultimately turn into the industry’s Tesla. With the surge in the growth of e-commerce, there is a need for more cost-effective last-mile delivery vehicles. If the company does win the USPS contract in December, then WKHS stock will have clear visibility to enormous gains over the next few years. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Action Alerts PLUS is a registered trademark of TheStreet, Inc. Of the remaining competitors, Workhorse is the best fit for the USPS contract. It has, to-date, been perceived as the best play on the electric delivery van megatrend. Click here to find out how. But the real catalyst for Workhorse has been the USPS. Louis Navellier and the InvestorPlace Research Staff, Impressive Gains Will Go On If Workhorse Seals $6B USPS Contract. Delivery vans aren’t driving hundreds of miles between cities, and they can be plugged in and fully recharged overnight. It’s far from clear how things may turn out. Postal Service — to the tune of $6 billion — WKHS stock may just be getting started. But it does Workhorse is still the most likely winner. For investors who want to get in on this boom, there are two issues. With the USPS contract, Workhorse gains immense visibility to turn into the Tesla (NASDAQ:TSLA) of delivery vans. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The overall halo effect of investor enthusiasm for electric car stocks contributed to the big gains. Fully electric. Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. Countries are implementing and sticking to legislature to decarbonize transportation. This is perhaps the biggest near-term risk. In short, the company already has a working electric delivery van, with market leading range and top-notch performance specs, that the company is actively delivering to some of the biggest customers in this space — like FedEx (NYSE:FDX), UPS (NYSE:UPS), Ryder (NYSE:R) and DHL — at the same time that most other companies in the market are still in the “concept” phase. Like us on Facebook to see similar stories, Law enforcement has 'delicate balance' at polls on election day, The 20 best things to get at Aldi this year, according to shoppers. Copyright © Postal … WKHS stock has turned into one of the market’s favorite stocks in 2020 for a few reasons. filings, the company did expand its 'output' year-over-year during the first six months of 2020 - despite pandemic-induced disruption all over the United State. it won’t be fully electric or zero-emission. Workhorse announced Monday that it was selling $200 million of four-year, 4% senior secured convertible notes to two unnamed institutional lenders. Analysts’ average price target is $23, according to Bloomberg. While there was a short drop-off in the first few weeks of July, WKHS resumed climbing. The New Daily 10X Stock Report: 98.7% Accuracy – Gains Up to 466.78%. However, Workhorse is focused on delivery fleets. But the company would eventually pivot to create trucks and vans for commercial purposes. But this is not the only major catalyst for WKHS stock. However, investors should note that shares have backed off. After this transaction, Workhorse will have more than $270 million in cash available. Still, the odds are good that Workhorse wins the USPS contract, and leverages that contract to turn into the Tesla of delivery vans in the U.S. over the next few years. But according to a 2018 press release, the Oshkosh/Ford entry in the NGDV program will have an internal combustion engine, i.e. Oh, and the company is coming public through a special purpose acquisition company. They have significantly longer range, and a refill takes five minutes instead of an hour plus.

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