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We Asked 1,000 Investors Why They Believe Workhorse Deserves USPS Contract

February 18, 2021 10:59 am
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We Asked 1,000 Investors Why They Believe Workhorse Deserves USPS Contract

Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios.

We surveyed a group of over 1,000 readers on if and why Workhorse Group Inc (NASDAQ:WKHS) will receive the USPS electric vehicle contract.

What Happened: It’s not exactly classified information that the USPS postal fleet is in desperate need of a revamp.

The post office now uses about 140,000 Grumman Long Life Vehicles for its main delivery service, according to the publication Trucks.

Manufactured from 1987 through 1994, the current fleet lacks essential functions such as air conditioning, airbags or anti-lock brakes. 

What’s more, the Grumman trucks used today are too small to accommodate the e-commerce packages that Americans have become even more accustomed to during the pandemic.

Enter Workhorse. For investors unfamiliar, Workhorse designs, manufactures, builds, and sells battery-electric vehicles and aircraft in the United States. 

The company also develops cloud-based and real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency.

As far as a timeline’s concerned, the U.S. Postal Service expects to make a contract decision about Workhorse replacement vehicles in the second fiscal quarter of 2021. 

This decision has been delayed multiple times already and now puts another layer of pressure on Workhorse, one of three finalists for the contract.

Here’s the reward for the Loveland, Ohio-based EV maker: if Workhorse is indeed in a strong position to win the USPS contract for upgrading its delivery fleet of 165,000 vehicles, it would be a preeminent source of revenue for the EV company valued at $6.3 billion.

See Also: How To Buy EV Stocks.

Any question as to whether USPS would go with a non-EV maker for their fleet overhaul has been all but wiped out.

“The federal government also owns an enormous fleet of vehicles, which we're going to replace with clean electric vehicles made right here in America, by American workers," President Joe Biden said during a Jan. 25 press conference.

Survey Says: So do Benzinga readers believe Workhorse will be the company to win the government contract?

Overall, 72% of respondents to our study believe Workhorse deserves the contract and is the right company for USPS.

Respondents to our study noted Workhorse is the only all-American, all-electric, zero emission company in the bidding for the contract. 

Many respondents pointed out that if the Biden administration is to fulfill its commitment to American-made clean energy, and as the public sentiment shifts to clean energy solutions, then the EV startup checks all the boxes and the case can be made for government decision-makers to go with Workhorse.

Readers who are current Workhorse traders also shared their excitement on the previously reported Jan. 4 purchase order Workhorse received for 6,320 of its C-Series all-electric delivery vehicles from Pride Group Enterprises. The order is split between Workhorse's C-1000 and C-650 models and is subject to various production and delivery conditions.

Whether or not Workhorse does get the USPS contract, respondents see this recent order as a signal of heightening interest for electric vehicles in the form of trucks, which they believe bodes well for Workhorse as a startup and for its peers.

This survey was conducted by Benzinga in February 2021 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 1,000 adults.

Photo courtesy of Workhorse. 


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