drinkgasil.blogg.se - Workhorse group news

There is still no progress on the USPS delivery truck contract as investors eagerly await an announcement.GM pulls out of the original deal with Nikola and sends electric truck stocks tumbling.NASDAQ:WKHS dropped 6.66% on Monday as the electric vehicle industry got hammered.WKHS Stock News: Workhorse Group Inc plummets on dilution of Nikola’s deal with GM Investors who are still bullish on Workhorse may find this as a nice opportunity to add the stock to their portfolios. Nothing has fundamentally changed about Workhorse except that potentially its largest contract will be delayed by another couple of months.

The after-hours dip for Workhorse seems like a bit of an overreaction at this point, although the news may just be compounding after the failed deal between Nikola (NASDAQ:NKLA) and General Motors (NYSE:GM) yesterday. The latest delay could be COVID-19 related or the agency could be holding out until President-elect Biden takes the White House.

The missed deadline by USPS is nothing new for Workhorse investors as it has been delaying the news since 2018. Workhorse is one of just a handful of companies left in the race but is up against the likes of established automakers like Ford (NYSE:F). The latest drop-off brings Workhorse to trading levels below its 50-day moving average, so much of the recovery that has taken place in November was instantly wiped out.Īnother delay of the USPS contract means investors will need to wait a couple more months before a deal is announced. Shares tumbled after hours by nearly 23% as investors fled from the Ohio-based company in one of the larger sell-offs the stock has seen. But then, news dropped that the USPS delivery truck contract has been delayed once again to the Q2 of the fiscal year 2021, and things got ugly for Workhorse. NASDAQ:WKHS had another bad day as the stock fell by 0.55% during Tuesday’s trading session.

It was another day in the red for the electric truck industry.

The contract has been delayed until Fiscal Q2 of 2021 at the earliest.

NASDAQ:WKHS fell 23% after hours on the USPS announcement.

WKHS Stock News: Workhorse Group Inc freefalls after hours as USPS delays contract once again With COVID-19 looking like it will continue to affect supply chains and manufacturing into 2021, Workhorse may have issues delivering on its future orders as well, something that the USPS may take into account when determining the reliability of the company. Some investors are taking the opportunity to buy this dip as Workhorse has already rebounded by over 4% in Wednesday’s after-hours trading. There are lingering concerns about Workhorse's ability to scale up to a large order though as even without the USPS contract, the Ohio-based firm has reported there could be issues delivering on the 300-400 vehicles it promised, by the end of this year. The odds are just as high though that this could be delayed once again as a shakeup in the White House and much of the American government could have an impact on the federal agency. While investors soured on Workhorse and Lordstown, it should be noted that this could just be a delay of a month or two until a decision by USPS is made.

Investors are optimistic that if Workhorse is able to secure some of the USPS contracts, it would call upon Lordstown for support. Workhorse subsidiary Lordstown Motors (NASDAQ:RIDE) also felt the sting of its association with Workhorse as it also fell by nearly 6% on Wednesday. The stock tumbled 19% between the closing bells on Tuesday and Wednesday, to close the most recent trading session at $20.43. NASDAQ:WKHS furthered its slide that began after hours on Tuesday when the USPS decided to delay its decision on refreshing its new delivery truck fleet. The selloff could be an overreaction as the stock rebounds after hours on Wednesday.The delay in the USPS delivery truck contract has sent investors packing for other electric vehicle plays.NASDAQ:WKHS continues its slide from Tuesday after hours into Wednesday’s trading session.