Subsequently, it dropped its legal complaint against the government, after Oshkosh filed a motion asserting 'Workhorse's failure to complete the administrative appeal process is fatal to its case.' Why the stock market is negativeĪmong other troubles, Workhorse recently lost a multibillion-dollar contract to build electric delivery runabouts for the Postal Service to industrial vehicle maker Oshkosh Corporation ( OSK 1.38%). While the company is undoubtedly having difficulties, several recent events hint at a turnaround chance within the next year or two and make Workhorse worth watching - though perhaps not buying right now. Investor confidence sank recently on the recall of several dozen Workhorse delivery vans for upgrades. On the date of publication, the InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.Following failure to win a huge USPS delivery vehicle contract, electric vehicle (EV) maker Workhorse Group ( WKHS -0.96%) is seeing its share prices crash even lower. And I wouldn’t buy WKHS stock at this price. If that were to happen, Workhorse could still slide in with a massive order, even if it’s only part of the overall contract. That being said, there is a possibility - a hope - that the USPS contract could be reopened to force more pure EVs into the mix. The numbers involved can’t come close to supporting the valuation of WKHS stock had when the company was a finalist for supplying 180,000 USPS vans, but let’s not forget that the stock was trading in the $2 to $3 range for three years before last summer’s USPS frenzy began. Its EVs also continue to be evaluated as last-mile delivery vehicles by courier companies. It has recently signed contracts to provide its C-1000 and C-650 electric delivery vans to several transportation fleets. However, the company is far from being in danger of collapse at this point. The company had a lot riding on the USPS contract, and the price of WKHS shares has had the assumption that it would get at least a chunk of the contract built in since last summer. There is no doubt that now is not the time to snap up WKHS stock, even though it is trading at less than half the value of its February all-time high close. Delivery for that order could start as early as July and will run through 2026. In January, Workhorse announced that Pride Group Enterprises has signed a contract to purchase 6,320 C-Series all-electric delivery vehicles. In November, Pritchard Companies ordered 500 all-electric C-1000 delivery vehicles. Last July, it was announced that Workhorse C-1000 vans would be available for rental or lease by Ryder (NYSE: R), a national commercial fleet-management company. In total 1,000 Workhorse electric vehicles have been ordered with the familiar brown and yellow paint job for evaluation. It’s been working with UPS (NYSE: UPS), the country’s largest courier company since 2018. While the USPS contract has been the holy grail for WKHS stock investors, the company has continued to soldier along with other ventures. If that proves true, Osborne has hopes that the decision might be overturned, or the contract split. He suggests that the USPS postmaster general - President Donald Trump’s appointee Louis DeJoy - may have had political motivations for the decision. Osborne is questioning the awarding of the contract given President Joe Biden’s administration’s commitment to zero-emission government fleets. He retained his “outperform” rating for WKHS, but lowered his price target from $25 to $18. Meanwhile, Cowen analyst Jeffrey Osborne had a mixed take on the news. Postal Service contract entirely, and facing a choppy supply-chain situation due to Covid-19–related headwinds, we are stepping to the sidelines.” In the aftermath of the USPS contract loss, analysts began a round of WKHS stock downgrades.Ĭolin Rusch of Oppenheimer downgraded WKHS to “perform” from “outperform.” In a note to clients, he wrote: Does the loss of the USPS contract spell the end for Workhorse? Or is there a chance the stock may stage a recovery? Analyst Reaction 23, WKHS stock is now trading in the $17 range. When the USPS announced the winner - and it wasn’t Workhorse - WKHS stock tanked.Īfter dropping nearly 50% in a single session on Feb. Workhorse was a finalist and the only pure EV contender. The contract was for up to 180,000 delivery vehicles and worth up to $6 billion.

Workhorse group usps contract