The sharp drop suggests investors viewed the potential USPS contract as a significant percentage of Workhorse's potential value. Workhorse's stock price plunged after news broke that the electric-vehicle company had lost a contract to make delivery vans for the United States Postal Service to defense contractor Oshkosh.
WORKHORSE STOCKTWITS REGISTRATION
Two other potential positive catalysts identified by bulls - a trademark registration and a court challenge to the USPS’ decision - probably would not prevent Workhorse from going belly up because they would likely take many years to materialize. Nor would Democrats be thrilled to upset voters in Wisconsin - which is a major swing state that could determine both control of Congress and the White House in the coming years - by overturning the USPS decision. WKHS stock bulls continue to hope that Congress will intervene to give the USPS contract to Workhorse.Įven if the latter company is up to the task (and a report by a short seller stated that Workhorse could not fulfill the contract), Democrats probably do not have enough votes in Congress to take the deal away from Wisconsin’s Oshkosh and give it to Workhorse. Lordstown’s issues certainly do undermine my confidence in Workhorse.Īlso worth mentioning is that Workhorse bulls were touting Workhorse’s shares of Lordstown stock as an important asset last year. The struggles of Lordstown, which recently announced that it may go out of business in the next year, should certainly not increase anyone’s confidence in WKHS stock. What’s more, in the company’s Q1 earnings press release and in the prepared remarks of its executives on its Q1 earnings conference call, Workhorse appeared to make no mention of the number of vehicle orders that it had accumulated. Partly due to its failures on those fronts, Workhorse’s first-quarter results were fairly dismal. Missed Opportunities and WKHS Stockĭespite the still-large, $1.7 billion market capitalization of WKHS stock, the automaker has not made any large deals or cemented any major partnerships. With Workhorse struggling in the increasingly competitive commercial EV market, I think that its most likely fate is bankruptcy. In an apparent effort to justify their upbeat view of Workhorse, despite all of its failings, WKHS stock bulls have identified a number of remaining positive catalysts for the company that are all highly unlikely to materialize. Post Office and UPS (NYSE: UPS), along with the tremendous struggles of an affiliated company, Lordstown Motors (NASDAQ: RIDE), all bode very badly for its outlook.Īs a result, even assuming that the company will have enough money to produce and market its electric truck, it’s highly unlikely that it will sell enough EVs to prevent WKHS stock from tumbling. The EV maker’s inability to win any major deals or recruit any impressive partners so far, its apparent failure to cash in on opportunities with the U.S.