This decision has been delayed multiple times already and now puts another layer of pressure on Workhorse, one of three finalists for the contract. 1125 N. Charles St, Baltimore, MD 21201. Postal Service contract to replace its aging long life vehicle (LLV) fleet. Workhorse (NASDAQ:WKHS)-21.5% post-market after Trucks.com reports of further delays in the U.S. WKHS Price Action: Shares of Workhorse fell 14% to $21.75 in after-hours trading. What Happened: The USPS is delaying its contract decision on the USPS replacement vehicles, according to Trucks.com. The … However, the USPS must also think about another kind of green (the economical variety), which makes the Workhorse narrative complicated. Postal Service process to award contracts for new mail trucks. Here, the EV platform, while offering myriad benefits, also has multiple questions. Workhorse Group ( WKHS) - Get Report shares fell after a report that the U.S. Perhaps they want to buy a new place or the latest exotics from Ferrari (NYSE:RACE). A Wall Street analyst downgrade has investors selling off as skepticism on Workhorse resurfaces. In 2015, the Postal Service began the process of replacing its aging fleet. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. The stock recently traded at $24.38, down 8.28%. It has skyrocketed 701% so far this year amid the mania for electric vehicle stocks. Workhorse Group is one of the finalists along with Turkey-based Krsan and Oshkosh Corporation (NYSE: OSK). Postal Service again delayed a decision to award contracts for new electric mail trucks. Postal Service expects to make a contract decision about Workhorse replacement vehicles in the second fiscal quarter of 2021. 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. U.S. quotes delayed at least 15 minutes, all others at least 20 minutes. ... WORKHORSE DIDN’T GET THE USPS CONTRACT.. TODAY. The USPS contract is a big deal for the company. “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. Irwin cut his share-price target to $27 from $33. The earliest new mail delivery trucks will replace the U.S. 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. Workhorse CFO Steve Schrader On The Status Of The USPS Contract, More expensive services lead euro zone inflation rebound in January, UPDATE 1-UAE weapons maker EDGE wants in on F-35 supply chain, Biden, Trudeau aim to move past Keystone pipeline disagreement in first bilateral meeting, More expensive services lead euro zone inflation rebound in Jan, BlackRock downgrades government bonds, keeps faith with stocks. 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. Plus, USPS delivery vehicles go through a lot, covering vast amounts of terrain across different environments. Even though Workhorse has other encouraging revenue channel opportunities, a disappointment with the USPS will almost surely hurt its shares in the near term. Postal Service to award $6.3B contract for new mail truck this year. The U.S. To cut down on that expense, Workhorse has proposed an all-electric solution. 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. For now, the Postal Service is looking to gather up proposals for its new delivery truck. The decision on who the contract will go to had already … Why Workhorse Group Isn’t a Shoo-in for the USPS Contract, will buy 6,320 C-Series all-electric delivery vehicles, EVs driven in hot temperatures degrade their batteries conspicuously more, EV tires are different from standard counterparts, 7 Dividend Stocks Offering Little More Than Danger, Louis Navellier and the InvestorPlace Research Staff, The Apple Car is Coming. 2021 InvestorPlace Media, LLC. Therefore, by the end of March, we should get a decision. However, this is not the first time that the USPS has delayed this program – not by a long shot. Postal Service contract for its next-generation mail trucks. The proposal deadline is set for March 27 th, however, an extension is also a possibility. 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? There are myriad factors that bolster this assumption. 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. 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. On the other hand, buying shares usually indicates confidence and it’s peculiar that there is a dearth in this avenue. The USPS told Trucks it expects to make a decision in the second fiscal quarter of 2021. 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.”. For instance, EV usage data indicates that EVs driven in hot temperatures degrade their batteries conspicuously more than vehicles driven in temperate climates. Further, because EVs have fewer moving parts, they are more reliable, all other things being equal. 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. At scale, 7% could mean a world of difference for a fleet owner like the USPS. Postal Service announced another delay in its efforts to award a more than $6 billion contract to replace its fleet of aging mail trucks. © 2020 Benzinga.com. But shares could hold steady for quite some time. This decision has been delayed multiple times already and now puts pressure on Workhorse, one of three finalists for the contact. The USPS has been in talks with companies like Workhorse and Ford since 2018 and has been working closely with them for testing. Is this something investors should be worried about? Hence, many are excited about the possibility of WKHS stock as the underlying company is the greenest. Combustion or not, tires do not last forever. Combined with zero emissions, WKHS stock seems the no-brainer proposition. Considering that the current LLV dates back to 1987, the USPS cannot just think about the immediate sentiment. Copyright © 2021 InvestorPlace Media, LLC. Another event also impacted Workhorse stock Friday. Workhorse is one of four remaining participants bidding for the contract. And they are not cheap to replace. Not surprisingly, WKHS stock jumped dramatically higher on the news. Personally, that’s not much. For instance, GreenCarReports.com states that EV tires are different from standard counterparts because they must accommodate the extra load of heavy battery packs. Workhorse’s odds of winning the Postal Service contract may be nil. Workhorse is bidding to replace thousands of postal vehicles—most notable the white, right-hand-drive delivery trucks. Executives can sell their stake for a number of reasons. The contracts include the production of roughly 180,000 delivery vans. One of them is growing public sentiment toward clean energy solutions. A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies.
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