Workhorse already has the ability to scale its manufacturing through a 265,000 square foot plant. It will purchase about 180,000 vehicles will be purchased over five to seven years. Also, any positive or negative news on the USPS contract can tilt the scales one way or another. Article printed from InvestorPlace Media, https://investorplace.com/2021/01/wkhs-stock-no-shoo-in-for-usps-contract/. Joe Biden calls for a 100% clean-electricity standard by 2035 and investing $2 trillion over four years in clean energy. Copyright © Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. As you know, combustion vehicles aren’t the most efficient transportation platforms. However, I think if you’re profitable on the company, you may want to mitigate some risk by taking some gains off the table. 1125 N. Charles St, Baltimore, MD 21201. On the date of publication, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. quotes delayed at least 15 minutes, all others at least 20 minutes. In between, a lot of lobbying will take place. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. News Trucking Analysts’ patience wearing thin with Workhorse delays Battery supply issue and lack of deliveries lead to tough questions. 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 U.S. Therefore, by the end of March, we should get a decision. I believe Workhorse would be a good choice. That could add more cost over the intended long life of these next-generation delivery vehicles. To cut down on that expense, Workhorse has proposed an all-electric solution. As Josh says, these companies employ a lot of people, leading to significant political capital. I expect some of that to rub on WKHS stock as well. Capacity issues are often discussed as the main thing going against Workhorse. A few months back, several analysts felt the contract would go to Ohio-headquartered Workhorse. Nasdaq None of them will like an all-electric solution, which is the one offered by Workhorse, as the preferred choice for the USPS contract. Faizan has several years of experience analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. However, the delay highlights the risk associated with investing in Workhorse. A West Coast-based investment banking firm predicts Workhorse Group Inc. will win the $8.1 billion U.S. 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. Even though Workhorse has other encouraging revenue channel opportunities, a disappointment with the USPS will almost surely hurt its shares in the near term. However, this is not the first time that the USPS has delayed this program – not by a long shot. Plus, Democrats have won the White House on a green agenda. Then again, if you don’t like taking a lot of risks, there is always Nio and Tesla. 1125 N. Charles St, Baltimore, MD 21201. Postal Service as early as the second half of … 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. “I think it’s a great opportunity for us. Channel For Options Trading And More!— [Second Channel]: https://www.youtube.com/channel/UC7Ua2fx21TOvPpSxrJSVeGA— [Patreon/Live … I wouldn’t base your entire decision of WKHS stock on the insider selling. 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. Workhorse has a $2.8 billion market capitalization. Regardless, I believe Workhorse is in a better position than the rest of the finalists to win. 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