![]() ![]() Overall, we think that deciding between the two stocks comes down to choosing between Workhorse’s potential order backlog and Canoo’s interesting tech. Postal Service’s aging fleet of delivery trucks and anticipation surrounding a deal has been a big factor driving the stock this year. Workhorse is one of three finalists for a $6 billion-plus fleet upgrade contract to replace the U.S. However, the company has been highlighting orders for its EVs from several customers, the largest of which is a 6,000 plus vehicle order from Pride Group, a company that specializes in commercial vehicle rentals and leasing. Workhorse’s business appears to be more focused although its product doesn’t appear to be as innovative as Canoo. Workhorse builds electrically powered delivery and utility vehicles, targeted at last-mile delivery - a segment that should be an ideal application for EVs, given the low maintenance costs and lower range related issues. These players could have an edge over Workhorse, given the scale of their manufacturing and their ability to potentially sell their EVs to existing customers. Moreover, Workhorse’s technology isn’t very differentiated and the company is likely to face a lot more competition as mainstream automakers including Daimler, General Motors GM, and Ford also have plans to make commercial EVs. The company manufactured just seven vehicles over the last quarter, and it’s not clear if it can meet its target of producing 1,800 vehicles for the full year on account of supply chain issues and limited supply of battery packs. Scaling up production could also be challenging. The Pride Group contract, for instance, is apparently tied to demand delivery vehicles from Pride’s end customers. ![]() That said, we are not sure if these deals will be binding. The company’s largest orders include a deal to supply around 6,300 vehicles to Pride Group, a commercial vehicle rental company, and another 500 vehicles to Pritchard Companies. Sarah Smith is a Web Content Producer with has other orders for its commercial vehicles, but they are much smaller than the USPS contract. On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. Now Workhorse just needs to navigate its way out of this big pothole. The company stands to benefit in the long term from growing consumer adoption of EVs. And even if the USPS remains firm with its pick of Oshkosh, there may be reason to keep WKHS on your radar. Depending on how things go Wednesday, we could see shares rally again. So what should you do here? Keep a close eye on Workhorse and WKHS stock. This is because it calls on the supplier to produce and deliver between 50,000 and 165,000 Next Generation Delivery Vehicles (NGDVs) for the USPS. Over the course of 10 years, it could be worth as much as $6 billion. That is because this contract is no small deal. Why does this matter? Although it is unclear just what sort of chance Workhorse has of flipping things in its favor, it seems investors are happy it is trying. There, executives will request additional information about the bid process. CEO Duane Hughes shared today that the company has a meeting with the U.S. Today, Workhorse told analysts that it is not going to give up the fight for the USPS contract. However, there is one even bigger catalyst working for Workhorse today… WKHS Stock Rises on USPS Comeback In many ways, it seems that the surprise profit gave WKHS stock bulls a jolt of support. For the full year, revenue came in at $1.4 million. Unfortunately, the revenue figure missed estimates for $1.2 million. Sales rose to $652,000, up from $3,000 in the fourth quarter. Net income for the year hit $69.8 million, up from a net loss of $37.2 million in 2019. Consensus estimates called for a net loss of $15.1 million. At the heart of the enthusiasm is news that Q4 net income rose to $280.5 million, up from just $655,000 last year. Today, the company shared fourth-quarter and full-year 2020 results. The first catalyst for Workhorse comes from earnings. So exactly is happening with Workhorse right now? Today though, the company is hoping to turn the story around. In the wake of the news, many investors thought it was game over for WKHS stock. Instead, the contract went to Oshkosh (NYSE: OSK). Last week, we learned that Workhorse lost that bid. Although it has other customers, a big catalyst for shares was the coveted deal with the United States Postal Service. ![]() Investors likely know that Workhorse is an electric vehicle startup promising to electrify last-mile delivery with its C-Series trucks. ![]()
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