Of the 16 analysts who have issued recommendations for the stock, six consider it a Strong Buy, eight consider it a Buy, and two consider it a Hold. The analysts are bullish on OSK, establishing an average target price of $128.33. WKHS has open orders for several thousands of electric vans yet the company has not proven it can fulfill such orders promptly. However, the company has also struggled with production startup challenges, coronavirus employee infections, and supply chain issues. WKHS stock understandably slid after losing the USPS contract. Furthermore, WKHS's EV technology is leased for use in the Lordstown Endurance Class 1 EV pickup truck. Though WKHS "last mile" vehicles top out around 75 miles per hour, the vast majority of the roads and highways in the United States have speed limits below this rate of speed. Though this space will not be used to make USPS vehicles in the next decade, there is a good chance WKHS vehicles will be used by delivery companies of other types. WKHS has an EV manufacturing plant that spans more than six million square feet. OSK has a forward P/E ratio of 21.20, a fairly reasonable figure considering the stock is priced a mere $2 away from its 52-week high of $126.16. The stock was priced at $60 in May of '20. OSK has been on fire across the past six months, jumping from$67 in late October to its current price of $124. OSK also has a partnership with Ford (F) that has resulted in the electric version of the large Transit vehicle produced in Missouri. However, OSK executives have recently made it well known the company is willing to produce battery-powered electric vehicles for the USPS. OSK makes military vehicles, refuse equipment, severe service equipment, and off-highway equipment. It is important to note the deal inked between the USPS and OSK is open-ended, meaning USPS can tack on additional money for even more delivery trucks down the line.
It is particularly interesting to note these vehicles will be retrofitted to accommodate improvements in EV technology in the years to come. USPS vehicles made by OSK will be designed with fuel-efficient engines or electric powertrains that are battery-powered. Upwards of 165,000 such vehicles will be made in the decade ahead. OSK will use the money to perfect its USPS vehicle model production. The decade-long contract starts with an investment of nearly $500 million. Little else is known about the contract as the USPS has provided precious few details and has discouraged executives from the three finalists from discussing the bid process.
However, the silver lining is WKHS was one of three finalists, meaning it will likely be considered for future projects in the months and years ahead. Most of those who piled their money into WKHS stock were surprised the EV-maker did not receive even a small piece of the contract that totals several billion dollars in aggregate. All in all, the deal extends a decade into the future during which OSK will make next-generation postal service delivery vehicles. Though some United States lawmakers have urged USPS power brokers to halt the contract, it appears as though it will move forward with OSK being the big winner and WKHS the big loser. Hughes said.Investors were big fans of WKHS all the way up until a couple of months ago when the USPS selected one of the EV maker's competitors, OSK, to make its delivery trucks. “I think what you’re seeing is a speedup in what President Biden is doing to put the board of governors together in such a way to support his plan going forward,” Mr.
Biden nominated three new members to the Postal Service board, which has the power to fire the postmaster general. Biden’s recent executive order to replace the 645,000 vehicles in federal fleets with electric vehicles.Īfter the contract decision was announced, Mr. DeJoy oversaw the decision to award a 10-year contract worth $482 million to Oshkosh, which offered to make gasoline-powered trucks that could be converted later to run on battery power. DeJoy has cut overtime and taken other steps in the name of efficiency that critics have said resulted in significant delays in letter and package deliveries.
Workhorse’s chances of getting a second shot at the Postal Service business may hinge on whether President Biden is able to force out Louis DeJoy, the postmaster general who was installed last year by board members appointed by former President Donald J.
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