![]() But at least one environmentalist criticized the USPS. government encourages and invests in clean energy electric solutions. Oshkosh (NYSE: OSK) will earn $482 million for its engineering efforts. ![]() Instead, the 50,000 to 165,000 vehicle orders are mostly internal combustion engine (ICE) vehicles. From a green perspective, the USPS could have increased its use of electric-powered vehicles. The lack of a USPS deal is a reminder to investors of the risks of relying on a sole customer for all the future business. If Workhorse fails to find another big customer, its cash burn will threaten its existence. The company is too young and has no track record to meet expectations. But chances are high that the USPS will only explain to Workhorse why it lost the tender. Hope arose earlier this month when Workhorse met with the USPS about the lost bid. Investors should expect the EV delivery truck company to fail to reach these analyst revenue estimates, while the stock could still rally.WKHS) logo and drone on the side of a truck." width="300" height="169"> 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. The company had COVID-19 issues impacting production and capacity goals for 2020, but the market probably expected a far larger goal for a company trying to obtain part of a contract with the USPS for 165,000 EV delivery trucks. Workhorse entered 2021 with a meager goal of delivering 1,800 vehicles this year. The USPS contract remains a wildcard and the company would best serve shareholders by not relying on this deal. Investors still have a lot of questions regarding the company's business capabilities after not even delivering $1 million in Q3 sales, but Workhorse continues to lineup potential business in future years. Postal Service contract potential, but the company is slowly building a solid backlog outside of the government service. The stock originally surged on the massive U.S. As the market focuses on some of the major electric vehicle companies, Workhorse ( WKHS) is slowly building an order book in the last-mile delivery van sector.
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