Workhorse has to prove it can ramp up production of its newer models and build out the service and support infrastructure its customers will need, Donnelly said. Of course, there are still challenges ahead. UPS has already put 345 Workhorse vans on the road, which has helped Workhorse build credibility, he added. Though the electric-van market is becoming increasingly crowded, Workhorse has the advantage of a head start over its competitors, Donnelly said. 'While investors are clearly shooting first and asking questions later, we believe that could present a compelling entry point following the ~50% sell off,' the analysts wrote. A group of Cowen analysts said in their Tuesday note that the collapse in Workhorse's stock price could create an opportunity for new investors. Though analysts from Cowen and Oppenheimer said in research notes published on Tuesday and Wednesday, respectively, that they're now less enthusiastic about Workhorse's stock, they believe the company, which lost $211 million on $741,000 in revenue during the first nine months of 2020, will become profitable by 2024. The company also licensed the design and technology of its W-1 pickup truck to Lordstown Motors, and will get a cut of the revenue from every truck Lordstown sells.

counts UPS and DHL among its customers and in January landed its largest order to date, for more than 6,000 vans. The startup has received orders for around 8,000 vehicles, according to Oppenheimer & Co. In a press release, Workhorse said it has requested more information from the USPS, and that it 'intends to explore all avenues that are available to non-awarded finalists in a government bidding process.'Įven if it can't reverse or mitigate the loss of this contract - which Bloomberg Intelligence estimated could be worth more than $5.7 billion - Workhorse should be alright, Donnelly and two other experts said. 'As you can see from the volatility in the stock-price reaction, there were a lot of investors thinking that this was kind of their golden ticket,' Patrick Donnelly, an analyst at the research firm Third Bridge, told Insider. 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.

It has a head start over competitors, orders from UPS, and a licensing deal with Lordstown Motors.

But experts said there are still reasons to be optimistic about the electric-van company.

Workhorse's stock price plunged after it failed to win a major contract from the US Postal Service.

House of Representatives panel approved $2.4 billion for USPS to buy new EV postal trucks and build charging infrastructure. Postmaster General Louis DeJoy has committed to at least 10% of the fleet's being electric vehicles, but has said that with government assistance the USPS could commit to making a majority of the fleet electric within 10 years.Ĭongress is considering providing USPS billions to speed the adoption of EVs. challenge by failing to raise it before the Postal Service.' Constitution, the Justice Department said, but it argued that 'Workhorse has forfeited its newfound. Workhorse later argued that USPS's administrative remedies violated the U.S. Lawyers for the Justice Department in July had filed a motion to dismiss Workhorse's challenge, citing its 'admitted failure to exhaust mandatory administrative remedies,' according to court documents. Workhorse and Oskhosh did not immediately respond to requests for comment late Tuesday. Workhorse's legal challenge, filed in June, had been set to face arguments before a judge on Wednesday on the U.S.

Workhorse had proposed building an all-electric vehicle fleet for USPS, while Oshkosh plans a mix of internal combustion-powered and battery-electric vehicles.

The 10-year contract announced in February could be worth more than $6 billion and allows for delivery of between 50,000 and 165,000 vehicles. Postal Service move to award a multibillion-dollar contract to Oshkosh Defense for delivery vehicles. WASHINGTON - Electric vehicle company Workhorse Group voluntarily dismissed on Tuesday its legal challenge against a U.S.

Workhorse usps