My research on Workhorse Group (WKHS) and why I believe they will get the contract from the United States Postal Service (USPS).
WKHS is one of three (Mahindra dropped out) possible options bidding to be the USPS’ next mail truck manufacturer. The contract is to replace their fleet of mail trucks/vans worth $6-8 Billion. WKHS is the only all-Electric solution of the final contenders. WKHS has a patent on vehicle-mounted drone delivery (Horsefly). It is also a leading competitor in drone delivery to Amazon (AMZN). We know the USPS is interested in Residential Delivery Drones because they put out an RFI for them last September. Though they likely got no response from anyone but Workhorse as the specs seem to specify the Horsefly without naming it. (credit WKHS Believer) WKHS has already sold to United Parcel Service (UPS), FedEx, DHL, Ryder and others…all major competitors of USPS. WKHS has partnered with Ryder who will provide warranty and maintenance services to their entire electric vehicle fleet in North America. USPS’ original Request For Prototype specifications stated they would lean towards American-made. Prefer to have EVs or Zero-Emission. The House of Representatives passed a recent infrastructure bill (CARES ACT) that specifically outlined money allocated to USPS for electric vehicles. The democrat-controlled House in other words, wants WKHS. After 100 days, they passed another USPS bill to fund the post office amid COVID19 (H.R. 8015: Delivering for America Act). Additional bills remain to be taken up for vote (H.R. 7969 "to authorize funding for the purchase of electric or zero-emission vehicles for United States Postal Service fleet, and for other purposes"). 1,100 vehicles have been ordered from WKHS recently by UPS and DHL Lordstown Motors (LM) located in Ohio is a company created by WKHS former CEO. They bought GM’s former Lordstown plant. LM will build electric pickups that were originally the idea of WKHS. WKHS owns 10% of LM. Also WKHS will receive a license fee equal to 1% of the gross sale price for each LM truck sold, up to the first 200,00 units. LM also agreed to prepay a portion of the license fee in an amount equal to 1% of the aggregate debt and equity commitment the company intends to raise. LM was recently visited by Vice President Mike Pence. It was also featured at the both the 2020 Democratic and Republican National Conventions.
Trump has high interest in keeping jobs in the United States. When GM closed its Lordstown facility, it angered the Pres. LM bought it and this pleased him. He wants it to succeed; not only is it good for jobs, but this is an election year: it is good for his reelection campaign. Ohio is a swing state and Trump wants that win. WKHS is the only All-American and only EV option = American jobs and more support for Trump from Ohio. WKHS can sell its zero-emission C-Series electric delivery vans in all 50 states after a California ruling buttressed a federal finding in the company’s favor. WKHS received certification from California Air Resources Board (CARB) as zero-emission vehicles in the State of California. The executive order, given to vehicle manufacturers who meet specific emissions standards in compliance with CARB regulations, also designated WKHS as the first and only medium-duty battery electric OEM to receive approvals from both the EPA as well as CARB. The executive order also clears the war for the C-series to be considered for the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project. Vehicles permitted into the HVIP program are eligible for monetary vouchers to reduce total cost for the purchaser. In late June, WKHS successfully completed Federal Motor Vehicle Safety Standards (FMVSS) testing for its C650 and C1000 all-electric delivery vans WKHS has more electric delivery vehicles on the road than any other company. July 14- Ryder begins offering the C-Series WKHS all-electric step van through the company’s ChoiceLease and SelectCare product lines, as well as for short-term rentals on COOP by Ryder. WKHS is HVIP eligible. WKHS’s 2020 model C1000 Standard Range (4-pack), C650 Extended Range (4-pack) and C650 Standard Range (2-pack) battery electric step vans are eligible for monetary vouchers of up to $50,000 per vehicle. While the HVIP program is currently withholding additional voucher requests until Fall 2020, WKHS will remain on the eligible vehicle list until additional funding has been designated for the program. LM is going public through the SPAC Diamond Peak Holdings (DPHC) and being that WKHS owns 10% in LM and will make 1% off LM first 200K trucks sold, WKHS will profit from them going public. LM’s Endurance truck, original design and property of WKHS, will be the first Commercial Full-size Pickup Truck to be available to the public in 2021. It will come even before Rivian’s truck and Tesla’s Cybertruck. WKHS has the only medium-duty BEV OEM permitted and able to sell and deliver its vehicles in all 50 US states. ARK Investments owns 500K+ shares and is consistently buying more (Aug 19). They consistently outperform Buffet’s Berkshire Hathaway and are known for their ability to make great investments. August 17th they purchased 48,200 shares and actually sold some of their Apple shares to do it. You can find their investments in the ARKQ ETF in the website PDF. |
AuthorI own a roofing company in Brighton, TN. I'm married with two kids 12 dogs and 3 cats. I enjoy motorcycles, peach sangrias, traveling and long walks on the beach. But enough about me...let's talk WKHS! ArchivesCategories |