Bullish Long on Workhorse (WKHS); multiple catalyst ahead
About Workhorse
Workhorse Group is known for manufacturing electrically powered delivery and utility trucks/drones.
Last month, Workhorse reported it received safety approvals for its electric vans. Workhorse noted that it actually became the first and only medium-duty battery electric vehicle (BEV) OEM to receive approvals from both the Environmental Protection Agency (EPA) as well as the California Air Resources Board (CARB) thus permitting the company to sell vehicles in all 50 states. Workhorse also saw more incoming orders for its vehicles. For example, Workhorse received an initial purchase order for 20 C-1000 trucks from eTrucks LLC, a newly-launched truck buyer, reseller, & financier and Ryder Systems also received two of Workhorse’s first vans in July. The company also reaffirmed previous production and delivery target of 300-400 vehicles in 2020.
Statement by management:
“In the first half of this year we accomplished a series of major operational and EV industry milestones, culminating in the first official deliveries of our C-Series trucks to Ryder just a few weeks ago,” said Hughes in a statement. “Additionally, after acquiring the requisite various state and federal approvals in recent months, we are now the only medium duty BEV OEM permitted and able to sell and deliver our vehicles in all 50 states, which should allow us to further distance ourselves as the first movers in the last-mile EV space. Widening our sales funnel through tax incentives, government programs, and strategic partnerships, all of which we now have, will allow us greater opportunities to build on our growing backlog. We are now focusing on maximising our efficiency and output as we look to ramp production throughout the remainder of this year to meet our ambitious delivery campaign goals.”
Take away:
*Management focus on parcel and miles delivery space
*Delivered two vehicle so far and 300 by end of this year
*Strong cash position and ability to deliver the orders
*1 of 4 bidders for USPS postal vehicle contract worth $5B -$6B to build as many as 180,000 delivery vans (result estimate 90days range)
*Some color about the contract participant:
Turkey-based Karsan, which makes commercial electric vehicles, teamed with long-time USPS supplier Morgan Olson of Sturgis, Mich. The team has offered a plug-in hybrid engine option for the new mail truck.
Mahindra Automotive North America was another but pulled out in the past week, according to the Postal Times. Mahindra was offering a gasoline or mild-hybrid power train option, according to government filings.
Workhorse Group, a small Loveland, Ohio, electric truck builder, had teamed up with truck body maker VT Hackney. But it said VT Hackney has dropped out of the project, leaving Workhorse to continue on its own. Workhorse paid $7 million for intellectual property related to the truck and acquired the right to bid for the contract.
The fourth team, specialty truck- and military vehicle maker, Oshkosh Corp., of Oshkosh, Wisc., and Ford Motor Co. of Dearborn, Mich., already have U.S. manufacturing facilities. They based their internal combustion engine entry on the Ford Transit cargo van.
Pros:
*Well positioned for Biden's blue wave
*Global focus moving towards ESG and working towards zero emission
*1 of 4 bidders for USPS postal vehicle contract worth $5B -$6B(result estimate 90days range), one of which dropped out from the bidding process leaving 1 of 3 bidders.
*Existing backlog orders to deliver
*China's upcoming emission policy will provide further global guidance towards EV adoption
Cons:
*If cash liquidity drys up over time, there could be possible equity funding (share dilution)
*May not deliver backlog orders as promised due to Covid19
*Fail to win bid for USPS contract
Technical:
Possible breakout play likely to gap up fueled by headline catalyst
Workhorse Group is known for manufacturing electrically powered delivery and utility trucks/drones.
Last month, Workhorse reported it received safety approvals for its electric vans. Workhorse noted that it actually became the first and only medium-duty battery electric vehicle (BEV) OEM to receive approvals from both the Environmental Protection Agency (EPA) as well as the California Air Resources Board (CARB) thus permitting the company to sell vehicles in all 50 states. Workhorse also saw more incoming orders for its vehicles. For example, Workhorse received an initial purchase order for 20 C-1000 trucks from eTrucks LLC, a newly-launched truck buyer, reseller, & financier and Ryder Systems also received two of Workhorse’s first vans in July. The company also reaffirmed previous production and delivery target of 300-400 vehicles in 2020.
Statement by management:
“In the first half of this year we accomplished a series of major operational and EV industry milestones, culminating in the first official deliveries of our C-Series trucks to Ryder just a few weeks ago,” said Hughes in a statement. “Additionally, after acquiring the requisite various state and federal approvals in recent months, we are now the only medium duty BEV OEM permitted and able to sell and deliver our vehicles in all 50 states, which should allow us to further distance ourselves as the first movers in the last-mile EV space. Widening our sales funnel through tax incentives, government programs, and strategic partnerships, all of which we now have, will allow us greater opportunities to build on our growing backlog. We are now focusing on maximising our efficiency and output as we look to ramp production throughout the remainder of this year to meet our ambitious delivery campaign goals.”
Take away:
*Management focus on parcel and miles delivery space
*Delivered two vehicle so far and 300 by end of this year
*Strong cash position and ability to deliver the orders
*1 of 4 bidders for USPS postal vehicle contract worth $5B -$6B to build as many as 180,000 delivery vans (result estimate 90days range)
*Some color about the contract participant:
Turkey-based Karsan, which makes commercial electric vehicles, teamed with long-time USPS supplier Morgan Olson of Sturgis, Mich. The team has offered a plug-in hybrid engine option for the new mail truck.
Mahindra Automotive North America was another but pulled out in the past week, according to the Postal Times. Mahindra was offering a gasoline or mild-hybrid power train option, according to government filings.
Workhorse Group, a small Loveland, Ohio, electric truck builder, had teamed up with truck body maker VT Hackney. But it said VT Hackney has dropped out of the project, leaving Workhorse to continue on its own. Workhorse paid $7 million for intellectual property related to the truck and acquired the right to bid for the contract.
The fourth team, specialty truck- and military vehicle maker, Oshkosh Corp., of Oshkosh, Wisc., and Ford Motor Co. of Dearborn, Mich., already have U.S. manufacturing facilities. They based their internal combustion engine entry on the Ford Transit cargo van.
Pros:
*Well positioned for Biden's blue wave
*Global focus moving towards ESG and working towards zero emission
*1 of 4 bidders for USPS postal vehicle contract worth $5B -$6B(result estimate 90days range), one of which dropped out from the bidding process leaving 1 of 3 bidders.
*Existing backlog orders to deliver
*China's upcoming emission policy will provide further global guidance towards EV adoption
Cons:
*If cash liquidity drys up over time, there could be possible equity funding (share dilution)
*May not deliver backlog orders as promised due to Covid19
*Fail to win bid for USPS contract
Technical:
Possible breakout play likely to gap up fueled by headline catalyst
Trade active:
Planned infrastructure under Biden could also see improvement to not just mitigate the effects of climate change, but install 500k EV charging stations over the next decade.
Trade active:
California Air Resources Board (CARB) passed a law that requires trucks, delivery vans, and heavy duty pickup trucks to move to zero emissions beginning in '24 and
phased in through '35. (June news)
phased in through '35. (June news)
Comment:
Comment:
*Open interest for WKHS Sept 18 contract scales larger towards Oct 16.
*Nice read by Seekingalpha; bulls vs bear point of view. "Workhorse: A Bearish View On The Potential USPS Contract"
-highlighting how upcoming election will impact workhorse; seeing it as politic-horse now
*Nice read by Seekingalpha; bulls vs bear point of view. "Workhorse: A Bearish View On The Potential USPS Contract"
-highlighting how upcoming election will impact workhorse; seeing it as politic-horse now
Comment:
*California Approves Largest Ever Utility Program to Expand EV Charging*
www.nytimes.com...a-electric.html?searchResu...
It is always good to see synergy build up in the green sector
www.nytimes.com...a-electric.html?searchResu...
It is always good to see synergy build up in the green sector
Comment:
One of the biggest detractors for newcomers in the electric vehicle (EV) market is manufacturing and supply chain. Many people don’t realize that Tesla Inc. (Nasdaq: TSLA
) spent its formative years building out capacity before it turned a profit.
Today’s EV whippersnappers have a bit more of an edge thanks to industry leaders such as Tesla, and Workhorse Group Inc. (Nasdaq: WKHS
) is taking full advantage.
Today, electric van and drone pro Workhorse announced a strategic agreement with Hitachi America and Hitachi Capital America to address manufacturing, supply chain and financing needs.
The agreements address crucial needs for Workhorse and will help the EV maker build out a global supply chain, develop a dealer network and support financing options for customers.
) spent its formative years building out capacity before it turned a profit.
Today’s EV whippersnappers have a bit more of an edge thanks to industry leaders such as Tesla, and Workhorse Group Inc. (Nasdaq: WKHS
) is taking full advantage.
Today, electric van and drone pro Workhorse announced a strategic agreement with Hitachi America and Hitachi Capital America to address manufacturing, supply chain and financing needs.
The agreements address crucial needs for Workhorse and will help the EV maker build out a global supply chain, develop a dealer network and support financing options for customers.
Comment:
Couple of events coming up ahead, will be great if Workhorse is able to touch base on ESG criteria and management's capability to deliver.
LD Micro 500 Virtual Conference
Presenting on September 3, 2020 at 3:20 PM ET
9th Annual Gateway Conference
Participating in EV and Mobility Panel on September 9 at 2:30 PM ET
Presenting on September 9, 2020 at 4:00 PM ET
5th Annual Colliers Institutional Investor Conference
One-on-one meetings only on September 10, 2020
Cowen 13th Annual Global Transportation & Sustainable Mobility Conference
Presenting on September 11, 2020 at 10:00 AM ET
LD Micro 500 Virtual Conference
Presenting on September 3, 2020 at 3:20 PM ET
9th Annual Gateway Conference
Participating in EV and Mobility Panel on September 9 at 2:30 PM ET
Presenting on September 9, 2020 at 4:00 PM ET
5th Annual Colliers Institutional Investor Conference
One-on-one meetings only on September 10, 2020
Cowen 13th Annual Global Transportation & Sustainable Mobility Conference
Presenting on September 11, 2020 at 10:00 AM ET
At least 23 other states and the District of Columbia have set greenhouse gas targets, though specifics vary, according to the Center for Climate and Energy Solutions.
Gov. John Bel Edwards said United States is among the world’s biggest carbon polluters. Louisiana’s ultimate and interim goals are in line with those in the Paris agreement of 2017 and those of many other states. “We want to be the gold standard” for climate solutions.
Edwards said there’s also tremendous development and jobs potential in renewable energy and such techniques as restoring wetlands, where green plants will take in carbon dioxide that is emitted into the air, and creating ways to capture the gas from refineries and factories and store it in underground formations rather than letting it into the air
This unlocks so much space for renewable energy sector not just for Workhorse.