WKHS Stock News: Workhorse Group Inc sinks by 19% as investors sour on another USPS delay
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- NASDAQ:WKHS continues its slide from Tuesday after hours into Wednesday’s trading session.
- The delay in the USPS delivery truck contract has sent investors packing for other electric vehicle plays.
- The selloff could be an overreaction as the stock rebounds after hours on Wednesday.
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 stock tumbled 19% between the closing bells on Tuesday and Wednesday, to close the most recent trading session at $20.43. Workhorse subsidiary Lordstown Motors (NASDAQ:RIDE) also felt the sting of its association with Workhorse as it also fell by nearly 6% on Wednesday. Investors are optimistic that if Workhorse is able to secure some of the USPS contracts, it would call upon Lordstown for support.
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. 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. 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.
WKHS stock news
Some investors are taking the opportunity to buy this dip as Workhorse has already rebounded by over 4% in Wednesday’s after-hours trading. 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.
WKHS Stock News: Workhorse Group Inc freefalls after hours as USPS delays contract once again
- NASDAQ:WKHS fell 23% after hours on the USPS announcement.
- The contract has been delayed until Fiscal Q2 of 2021 at the earliest.
- It was another day in the red for the electric truck industry.
NASDAQ:WKHS had another bad day as the stock fell by 0.55% during Tuesday’s trading session. 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. 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. 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.
Another delay of the USPS contract means investors will need to wait a couple more months before a deal is announced. 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 missed deadline by USPS is nothing new for Workhorse investors as it has been delaying the news since 2018. The latest delay could be COVID-19 related or the agency could be holding out until President-elect Biden takes the White House.
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. Nothing has fundamentally changed about Workhorse except that potentially its largest contract will be delayed by another couple of months. Investors who are still bullish on Workhorse may find this as a nice opportunity to add the stock to their portfolios.
WKHS Stock News: Workhorse Group Inc plummets on dilution of Nikola’s deal with GM
- NASDAQ:WKHS dropped 6.66% on Monday as the electric vehicle industry got hammered.
- GM pulls out of the original deal with Nikola and sends electric truck stocks tumbling.
- There is still no progress on the USPS delivery truck contract as investors eagerly await an announcement.
The pending deal between Workhorse rival Nikola (NASDAQ:NKLA) and automaker giant General Motors (NYSE:GM) fell through on Monday as GM walked away from the table on what would have seen them take a $2 billion stake in the beaten-down truck-maker. The trickle-down effect from this is that Workhorse and Lordstown Motors (NASDAQ:RIDE) have ties to GM and investors may now be wondering just how General Motors really feels about the electric truck industry. Shares of Lordstown were down 7.17% while Hyliion (NYSE:HYLN) was down over 18% on the day.
Workhorse investors are also starting to lose patience with the pending USPS delivery truck contract that has been rumoured to be settled by the end of the year. While Workhorse remains one of the finalists for the contract, it lags its other competitors in both a proven track record and production capacity, so at this point, it could be a stretch to presume that Workhorse will receive a large share of the order.
- NASDAQ:WKHS continues its slide from Tuesday after hours into Wednesday’s trading session.
- The delay in the USPS delivery truck contract has sent investors packing for other electric vehicle plays.
- The selloff could be an overreaction as the stock rebounds after hours on Wednesday.
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 stock tumbled 19% between the closing bells on Tuesday and Wednesday, to close the most recent trading session at $20.43. Workhorse subsidiary Lordstown Motors (NASDAQ:RIDE) also felt the sting of its association with Workhorse as it also fell by nearly 6% on Wednesday. Investors are optimistic that if Workhorse is able to secure some of the USPS contracts, it would call upon Lordstown for support.
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. 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. 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.
WKHS stock news
Some investors are taking the opportunity to buy this dip as Workhorse has already rebounded by over 4% in Wednesday’s after-hours trading. 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.
WKHS Stock News: Workhorse Group Inc freefalls after hours as USPS delays contract once again
- NASDAQ:WKHS fell 23% after hours on the USPS announcement.
- The contract has been delayed until Fiscal Q2 of 2021 at the earliest.
- It was another day in the red for the electric truck industry.
NASDAQ:WKHS had another bad day as the stock fell by 0.55% during Tuesday’s trading session. 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. 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. 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.
Another delay of the USPS contract means investors will need to wait a couple more months before a deal is announced. 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 missed deadline by USPS is nothing new for Workhorse investors as it has been delaying the news since 2018. The latest delay could be COVID-19 related or the agency could be holding out until President-elect Biden takes the White House.
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. Nothing has fundamentally changed about Workhorse except that potentially its largest contract will be delayed by another couple of months. Investors who are still bullish on Workhorse may find this as a nice opportunity to add the stock to their portfolios.
WKHS Stock News: Workhorse Group Inc plummets on dilution of Nikola’s deal with GM
- NASDAQ:WKHS dropped 6.66% on Monday as the electric vehicle industry got hammered.
- GM pulls out of the original deal with Nikola and sends electric truck stocks tumbling.
- There is still no progress on the USPS delivery truck contract as investors eagerly await an announcement.
The pending deal between Workhorse rival Nikola (NASDAQ:NKLA) and automaker giant General Motors (NYSE:GM) fell through on Monday as GM walked away from the table on what would have seen them take a $2 billion stake in the beaten-down truck-maker. The trickle-down effect from this is that Workhorse and Lordstown Motors (NASDAQ:RIDE) have ties to GM and investors may now be wondering just how General Motors really feels about the electric truck industry. Shares of Lordstown were down 7.17% while Hyliion (NYSE:HYLN) was down over 18% on the day.
Workhorse investors are also starting to lose patience with the pending USPS delivery truck contract that has been rumoured to be settled by the end of the year. While Workhorse remains one of the finalists for the contract, it lags its other competitors in both a proven track record and production capacity, so at this point, it could be a stretch to presume that Workhorse will receive a large share of the order.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.