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These statements are made under the "safe harbor" provisions of the U.S. This press release includes forward-looking statements. All Workhorse vehicles are designed to make the movement of people and goods more efficient and less harmful to the environment. Workhorse also develops cloud-based, real-time telematics performance monitoring systems that are fully integrated with our vehicles and enable fleet operators to optimize energy and route efficiency. As an American original equipment manufacturer, we design and build high performance, battery-electric vehicles including trucks and aircraft. Workhorse is a technology company focused on providing drone-integrated electric vehicles to the last-mile delivery sector. Interested parties are invited to attend the call, details for which can be found here. Workhorse management will host the presentation, followed by a question and answer period. Separately, on March 1 the Company will be holding a conference call to discuss its quarterly and year-end financial and operational results. As further updates are provided, Workhorse intends to share that information through appropriate communications channels to the extent that the Company is permitted to do so.
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The Company intends to explore all avenues that are available to non-awarded finalists in a government bidding process. After being informed of the USPS decision, the Company has requested, pursuant to the bid process rules, additional information from the USPS and is awaiting a response at this time. On Februthe USPS issued a press release announcing that it has made an award under the NGDV contract to a competing finalist, the details of which can be found here.
Workhorse group usps contract update#
(Nasdaq: WKHS) (“Workhorse” or the “Company”), an American technology company focused on providing sustainable and cost-effective drone-integrated electric vehicles to the last-mile delivery sector, today provided an update related to its bid to participate in the United States Postal Service Next Generation Delivery Vehicle (“USPS NGDV”) program. 24, 2021 (GLOBE NEWSWIRE) - Workhorse Group Inc. With the large USPS contract seen as just a bonus, investors will do well in this stock with a market cap at only $3 billion and an annual market opportunity topping $18 billion.CINCINNATI, Feb. As long as the company continues to make progress in attracting orders outside of the USPS contract and expanding capacity, the stock will remain a strong growth story. The key investor takeaway is that Workhorse will remain a highly volatile stock in the EV space. In addition, supply chain issues with a battery supplier isn’t helping the recent slow production ramp. The company currently has a cash balance of only $260 million, so Workhorse is going to need to grow manufacturing capacity and possibly work with Lordstown Motors to build out capacity. More contracts and even winning a portion of the USPS deal will set up Workhorse for a bright future in the EV delivery truck sector without needing to hit these initial financial targets. Investors should expect the EV delivery truck company to fail to reach these analyst revenue estimates, while the stock could still rally.Īs investors have seen with Tesla over the years, the stock will trade based on the company making progress towards the growth story. To reach these estimates, Workhorse would either have to hit a higher ASP (average selling price) or to actually deliver up to 2,800 vehicles. The company doesn’t even expect to deliver 450 vehicles per quarter in 2021 after failing to reach an original meager goal of 300 to 400 vehicles in 2020.Īnalysts have aggressive 2021 targets with revenue estimates of $139 million. Combined with the recent rollout of the Ryder contract, Workhorse is far less reliant on the USPS contract.ĭespite the work with the USPS for years now, Workhorse is still very unproven as far as an EV manufacturer. The order follows an initial 500 C-1000 delivery vehicle order from Pritchard Companies, which has developed a distribution network of commercial vehicles with sales topping 30,000 units annually. The deal starts in July and runs through 2026 and would have a value of over $300 million based on a truck ASP of $50,000. While the government continues to delay the awarding of the estimated $6.3 billion contract, Workhorse signed a deal with Pride Group Enterprises for 6,320 C-Series all-electric delivery vehicles.