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Why Workhorse Shares Rallied 13% Today

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Why Workhorse Shares Rallied 13% Today

Workhorse Group Inc (NASDAQ: WKHS) rose almost 13% in the regular trading on Monday.

What Happened: The surge came as a group of 17 U.S. House Democrats introduced a bill to award $6 billion to the United States Postal Service in order to purchase tens of thousands of electric delivery vehicles, Reuters reported.

The contract could reportedly translate into the addition of 50,000 to 165,000 EVs to the USPS fleet over the next decade.

The bill is sponsored by Rep. Jared Huffman (D-Calif.) and requires that at least 75% of the new postal fleet to be electric or zero-emission.

See also: How to Buy Workhorse Group, Inc. (WKHS) Stock

Other backers of the legislation include Rep. Peter DeFazio (D-Ore.) and Rep. Carolyn Maloney (D-N.Y.).

Why It Matters: The proposed legislation mandates that no less than 50% of medium/heavy-duty vehicle purchases be electric or zero-emission through 2029 and all new USPS vehicles be zero-emission post January 2040, as per Reuters.

There is no surety that the USPS will purchase vehicles from Workhorse, but nevertheless, the company’s stock was trending after the bill was introduced.

See Also: Biden Says Entire Federal Fleet Will Be Replaced With Electric Vehicles — Workhorse, Lordstown Surge

Late last month, Workhorse rival Oshkosh Corporation (NYSE: OSK) grabbed a multi-billion dollar deal with the USPS to modernize the latter’s vehicle fleet. Workhorse was one of the finalists for that contract.

Price Action: Workhorse Group shares closed 12.89% higher at $15.50 on Monday and gained 0.97% in after-hours trading.

Click here to check out Benzinga’s EV Hub for the latest electric vehicles news.

 

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