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Workhorse Group Inc. (NASDAQ:WKHS) Rough Year Bears Current Consideration

Pete Matthews , , , ,

Workhorse Group Inc. (NASDAQ:WKHS), an EV company, has had two peaks in its share prices in the year 2021 already. One of these could be attributed to the USPS contract. Workhouse seemed to have a higher chance of winning the contract of replacing the Grumman truck used by the United States Postal Service.

Tracing back to January 2020, Workhouse had made it to the final list of companies who would win the said contract. This list formerly of 4 companies was further shortlisted to 3- and Workhouse was still in the running along with Oshkosh; and another joint team of Turkish EV maker- Karsan and the Michigan-based walk-in vans maker- Morgan Olson.

Moreover, with Joe Biden- the President- declaring to move towards the domestically manufactured electric fleet seemed to be an advantage for Workhouse. These speculations around the contract had increased not only the demand but the stock prices of the company as well.

However, in February 2021, the 10-year contract to build 105,000 delivery vehicles was awarded to Oshkosh.  This resulted in a sharp fall in share prices of Workhouse for over three months.

The shares saw a rise in their share prices again in June 2021 – thanks to the short interest.   Further, the rise in prices might also be a result of Workhouse challenging the USPS contract final decision. The company is said to have filed a complaint in the Federal Court.

However, the chances of the decision being altered seem far-fetched.

Pete Matthews

Pete attended the University of Colorado and still calls the centennial state home. He chases trout in the summer and snowboards in the winter. He is fascinated with the markets and has a strong interest in nanocap stocks and crypto currency.