![]() ![]() It has selected Oshkosh Defense as the prime contractor to build the vehicles that will replace those in use today, some of which are 30 years old and require constant maintenance to keep running. ![]() Originally, the postal service said only 10% of its new delivery vehicles would be battery electrics. ![]() Under pressure from the Biden administration, several states, and the UAW, the USPS this week announced “at least 50 percent of newly ordered NGDVs in the current contract are expected to be battery electric vehicles.” NGDV in postal-speak stands for “next generation delivery vehicle.” The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Chris Lau did not have (either directly or indirectly) any positions in the securities mentioned in this article. Since most of Workhorse’s latest rally is based on hope, investors should exercise extra caution before speculating on this company. Still, if Elon Musk renews his focus in the sector, Tesla shares may rally further. The company did not say anything about its Cybertruck in the last year. Tesla’s (NASDAQ: TSLA) stock is recovering. The market reacted favorably to Ford’s electrification announcement. Related InvestmentsĮV investors may consider Lordstown Motors (NASDAQ: RIDE), but since the company is burning money, Workhorse may have a better chance of survival.įord stock almost doubled from 52-week lows but is a good alternative. The average price target is $15.38, according to Tipranks. Only two of the six analysts covering Workhorse have a “buy” rating. Eventually, it will need to raise funds to offset losses. Without mass production, Workhorse will operate at a cost disadvantage. At lower prices, Workhorse’s delivery vans will face a margin crunch. The well-capitalized firm could commoditize delivery vehicles. It also shared little specifics on the USPS selection process in the statement.įord’s (NYSE: F) F-150 EV and inexpensive Maverick Pickup Hybrid announcements change the landscape. Instead, it cited the competitive process. It did not release any details on the vehicle prices, the product’s advantages, or any other data that might benefit its competitors. Unfortunately, the public has little to look at in Workhorse’s lawsuit. It also accused the feds of being lukewarm on electric trucks. ![]() Recently, the company sued USPS claiming it was not given due consideration. After losing the bid, though, the stock fell sharply. That set the stage for the company winning the USPS contract. By January of this year, the media talked about Workhorse receiving over 6,000 electric delivery vehicle orders. In 2018, industry website Electrek wrote about Workhorse’s $52,000 plug-in electric pickup truck. Postal Service, speculators are betting something will change the outcome.īefore Workhorse stock peaked at over $40 earlier this year and before the failed USPS deal, clean energy investors had very high hopes. As prices fell to lows not seen since last year, speculators emerged to bet on the sector finding a bottom.ĭespite losing a bid to supply Workhorse trucks to the U.S. The clean energy and electric vehicle sector peaked in February. ![]()
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