Shares of Workhorse (WKHS) slipped 42% on news that the United States Postal Office’s $6 billion dollar EV fleet deal fell through, they instead decided to go with Oskosh (OSK), a Ford (F) partner. F stock is up 12% and OSK stock is up 18% on the news.
Many investors are selling their shares of Workhorse, however one may argue that it still has room for major upside with President Biden’s deal for a greener companies are looking for solutions more than ever before.
Workhorse still has a chance, while it already partnered with UPS, DHL, FedEx it still has a chance to grab other delivery companies like XPO, and Amazon.
The company is struggling to be profitable
Since its founding the company has sold around 400 vehicles, GM decided to sell this failing company in 2014. In a bid to cut costs and move away from sedans, GM announced in 2018 that it was closing the plant (along with two others) and laying off its workers there. Trump scorned the automaker over the decision — that is, until, in May 2019, GM decided to sell it to a struggling electric truck startup called Workhorse.
Workhorse to fight United States Postal Office contract loss
Electric vehicle maker Workhorse said on Wednesday that it has requested more information on why the USPS deal fell through and loss the contract to Oshkosh Defense.
The company said that it looks to explore all available avenues for non-awarded finalists of government bidding process. The contract, which could be worth more than $6 billion in total, allows for delivery of between 50,000 and 165,000 of the vehicles over 10 years that will be a mix of combustion-powered and electric vehicles.