Workhorse Group Inc. (NASDAQ: WKHS), a maker of electric commercial vehicles, had its stock rise 15.97 percent to $3.63 in July 20 trading. The cause was the US Postal Service’s aim to buy more electric vehicles.
The United States Postal Service has revised its fleet renewal plans. She now plans to purchase many more electric vehicles rather than diesel and gasoline vehicles. This does not guarantee that Workhorse will obtain the supply contract, but some investors believe that the firm will benefit from the growth of Workhorse’s electric vehicle fleet.
There are reasons to be optimistic. Workhorse already lost the USPS contract war. Oshkosh, which provided internal combustion engines and electric vehicles, was the winner. However, the customer’s intentions have altered and he now wishes to purchase more electric vehicles.
At least 25,000 of the 50,000 automobiles bought from Oshkosh will be all-electric, according to USPS. Furthermore, at least 40% of the overall fleet of 84,000 cars slated for acquisition must be electric.
As a result, Oshkosh remains the primary supplier to the USPS, however, it will be more difficult for the firm to complete the order owing to the increased use of electric machinery. Some investors were encouraged by the shift in plans, believing that Workhorse would eventually gain from the USPS fleet renewal.
Workhorse had already sued as a result of the USPS decision and Oshkosh’s success. However, management has now changed, and the new managers have dismissed the case. Additional funds have also been allocated to the construction of an electric delivery van.
According to Workhorse management, such a vehicle will be in high demand, particularly among small businesses looking to decrease transportation costs.
The stock has gained 23.18 percent in the last month, 9.20 percent in the last three months, and 1.14 percent in the last six months. WKHS has past-week price volatility of 8.14 percent and past-month volatility of 7.92 percent.