society at large has some lingering doubts about Muslim countries. Maybe it’s because we prefer binary thinking (good guys versus bad guys, Democrats versus Republicans). However, it seems like the blogosphere is forgetting that Turkish automotive firm Karsan is also one of the finalists. And if the Oshkosh/Ford proposal wins out, you’d have to imagine that’d be a slap in the face to WKHS stock. It’s trying to reverse its money-losing image. This is huge because aside from environmental concerns, predictability (from a proven track record) carries a premium.Īfter all, the USPS isn’t in this business to lose money … wait, check that. Though this combustion candidate can run a diesel engine (yuck!), this is the only platform that has been modified from an existing production vehicle. Theoretically, this makes WKHS stock a resounding buy.īut those who are negative on Workhorse’s chances - because of USPS’s delay - fancy the proposal by Oshkosh (NYSE: OSK) and Ford (NYSE: F). At worst, Workhorse will take part of the contract, if the USPS splits the reward. Can Karsan Shock WKHS Stock?įrom 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. This time it’s different - or so we think. However, the technology has failed to deliver in the past. Plus, the USPS has a history of attempting to swap their LLVs for electric versions. Long story short, the constant stop-go commuting of city driving that is the bane of combustion vehicles translates to usable kinetic energy for EVs.Ĩ Battery Stocks That Electric Vehicle Companies Rely On Given that the vast majority of LLVs drive under 40 miles a day in city conditions rife with last-mile problems, EVs have the massive advantage of regenerative braking. And what are we supposed to do in 2020? That’s right, listen to the science. Rather, the science also supports WKHS stock. And that’s not an advantage based purely on politics, with the incoming administration’s net-zero emissions goal. With the large USPS contract seen as just a bonus, investors will do well in this stock with a market cap at only $3 billion and an annual market opportunity topping $18 billion.Indeed, Workhorse’s proposal is the only one that is 100% electric-vehicle based. As long as the company continues to make progress in attracting orders outside of the USPS contract and expanding capacity, the stock will remain a strong growth story. The key investor takeaway is that Workhorse will remain a highly volatile stock in the EV space. In addition, supply chain issues with a battery supplier isn’t helping the recent slow production ramp. The company currently has a cash balance of only $260 million, so Workhorse is going to need to grow manufacturing capacity and possibly work with Lordstown Motors to build out capacity. More contracts and even winning a portion of the USPS deal will set up Workhorse for a bright future in the EV delivery truck sector without needing to hit these initial financial targets. Investors should expect the EV delivery truck company to fail to reach these analyst revenue estimates, while the stock could still rally.Īs investors have seen with Tesla over the years, the stock will trade based on the company making progress towards the growth story. To reach these estimates, Workhorse would either have to hit a higher ASP (average selling price) or to actually deliver up to 2,800 vehicles. The company doesn’t even expect to deliver 450 vehicles per quarter in 2021 after failing to reach an original meager goal of 300 to 400 vehicles in 2020.Īnalysts have aggressive 2021 targets with revenue estimates of $139 million. Combined with the recent rollout of the Ryder contract, Workhorse is far less reliant on the USPS contract.ĭespite the work with the USPS for years now, Workhorse is still very unproven as far as an EV manufacturer. The order follows an initial 500 C-1000 delivery vehicle order from Pritchard Companies, which has developed a distribution network of commercial vehicles with sales topping 30,000 units annually. The deal starts in July and runs through 2026 and would have a value of over $300 million based on a truck ASP of $50,000. While the government continues to delay the awarding of the estimated $6.3 billion contract, Workhorse signed a deal with Pride Group Enterprises for 6,320 C-Series all-electric delivery vehicles.
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