![]() Workhorse will win the USPS contract, and leverage first mover’s advantage to turn into one of the biggest players in the domestic market. I think all 350,000 of those vans will be electric by 2030. My numbers suggest that WKHS stock will take out the $40 level in 2021.Ībout 350,000 last-mile delivery vans are sold in the U.S. To that end, Workhorse winning the USPS contract optimally positions the electric delivery van maker for a decade of hypergrowth ahead.īehind that decade of hypergrowth, WKHS stock will soar. Those are winning attributes which will likely attract many, many new customers to Workhorse over the next few years, as almost all logistics companies in the world follow USPS and electrify their fleets. ![]() Thus, if Workhorse wins the USPS contract, this will be a company that, by 2025, will be a distinguished leader in making electric delivery vans with an unmatched ability to manufacture these vans. At the same time, thanks to the USPS partnership, Workhorse will likely be able to raise a ton of money at favorable terms to dramatically expand manufacturing capacity. In winning the USPS contract, Workhorse will cement itself as a viable leader in the electric delivery van market. It will essentially guarantee the company billions of dollars of revenue over the next few years.įor a company set to do about $1 million in revenue this year, that’s a massive deal.īut, the long-term implications of a USPS contract win for Workhorse are much bigger than the near-term revenue injection. Winning all or most of the USPS contract is a huge near-term deal for Workhorse. When the company does, WKHS stock will pop in a huge way. To that extent, I think it’s basically a done-deal. ![]() So, they’re basically out of the running, too. Biden is also pledging American-made vans. So, Oshkosh is basically out of the running. He’s pledging to electrify federal fleets. Thus, Workhorse is the “best fit” for USPS since it’s a U.S.-based company that makes electric vans.īiden basically confirmed that Workhorse will, indeed, win the contract. Sign Up for Luke’s Free Hypergrowth Investing Newsletter (And Free Special Report).The other finalist, Oshkosh - who is partnering with Ford (NYSE: F) - is proposing to make a delivery van built on an internal combustion (so it’s not electric). ![]() agency taps a Turkish company to supply its vans. One of them, Karsan, is a Turkish-based company. There are three finalists for the contract. I’ve long held the belief that, despite multiple delays, Workhorse will end up winning the enormous $8.1 billion USPS fleet upgrade contract. Thus, if Workhorse does indeed win the contract in early 2021, Workhorse stock will stage an enormous rally over the next 12 months. The entire bull thesis on WKHS resets upon that contract. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.Source: Stratos Brilakis / īecause in making that pledge, Biden basically confirmed that Workhorse will win the huge and significantly delayed USPS contract. PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. “In two years, best case, we get the Post Office contract, we also have a lot more orders and we’re producing to the tune of maybe 2,000 to 3,000 new vehicles per year in the C-Series,” he said. In a best-case scenario, Schrader said Workhorse has a massive opportunity in the next two years with both vans and drones. “I think what investors have done is looked at little Workhorse here and said look, not only are they making vehicles right now, they already have orders, and in addition to that they have a drone and they have an opportunity with the Post Office,” Schrader said. “They want safety first for sure, but from that standpoint, I think it’s a real opportunity and I think it’s more like two years away versus five years away,” he said.įirst-Mover Advantage: In the meantime, Schrader said Workhorse doesn’t have a true competitor and has roughly a two to three-year head start on Rivian. Schrader said any company that wants to launch a true drone delivery service that would rival a truck would need FAA certifications. Workhorse recently ran a demonstration of its autonomous touchless delivery in Virginia. Watch to the full interview with Steve Schrader in the clip below, or listen to the podcast hereĬOVID-19 Impact: Schrader said the COVID-19 outbreak has significantly increased interest in touchless and drone delivery. Obviously, if we were to get the full award or a decent-sized award, that would be transforming for the company,” Schrader said. “I think it’s a great opportunity for us. In addition, he said Workhorse vehicles have half the maintenance costs of the current USPS fleet.
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