For months, investors have been eagerly awaiting the federal government’s decision on who will win a lucrative contract to replace its aging the U.S. Postal Service (USPS) delivery fleet. One of the options is Workhorse and WKHS stock stands to benefit in a big way if the company wins the bid.
Workhorse is already one of three finalists for the Postal Service’s fleet replacement contract, which is valued at more than $6 billion and would include 180,000 new delivery vans.
The other two finalists are Karson, which teamed up with Morgan Olson, and Oshkosh, which submitted its bid in partnership with Ford.
What’s notable is that Workhorse’s bid is the only one of the three to be filled fully with electric vehicles. That said, EVs seem to be an ideal solution the Postal Service’s fleet issues. EVs travel for short distances — filling that last-mile delivery role to bring mail to residences and businesses. And they then return to their home base each day, where they can charge up and be ready to go the next day.
Just as importantly, EVs provide a green solution that is exactly what the new president is requiring of the federal government.