In May 2019, former President Donald Trump tweeted that Workhorse, an electric vehicle maker, would buy the closed GM plant in Lordstown, Ohio, prompting a surge in Workhorse shares. Shares of Workhorse have practically risen since then, along with the presumption that it could make the next USPS mail truck. Friends, it won’t be.
The U.S. Postal Service. Announced On Tuesday that instead of Oshkosh Defense, a Wisconsin-based contractor, it will pull it off, cutting Workhorse’s stock price in half almost instantly. Wednesday, workhorse issued the following statement, which is identical to the statement I issued in high school after inviting someone to prom and being rejected:
On February 23, 2021, the USPS issued a press release announcing that it had awarded an award under the NGDV contract to a competing finalist, the details of which can be found. here. After being informed of the USPS decision, the Company has requested, in accordance with the bidding process rules, additional information from the USPS and is awaiting a response at this time. The Company intends to explore all avenues that are available to non-awarded finalists in a government bidding process. As more updates are provided, Workhorse intends to share that information through appropriate communication channels to the extent that the Company is authorized to do so.
According to The New York Times, Workhorse had less than $ 1 million in revenue in the first three quarters of 2020while Oshkosh had $ 8.4 billion in revenue in 2019 alone. Workhorse also has only about 130 employees, while Oshkosh has more than 14,000. The mail truck contract, meanwhile, calls for up to 165,000 new mail trucks over ten years, meaning Workhorse’s diminutive size may have doomed it alone.
All of which means this is a major, possibly fatal flaw for Workhorse, although it still has your other lines of business, in addition to his ten percent investment in Lordstown Motors, the electric truck maker that introduced its Endurance to the Trump White House. That day, thanks to his investment in Lordstown, Workhorse saw its shares rise 16 percent. It’s good that Trump is still in the White House to give him a boost … wait, I hear otherwise … hmm.