Workhorse Stock Update!! WKHS, UPS, and USPS Contract Analysis.

Описание: What’s up YouTube! Welcome back to Broke Man Finance.
Today’s video is more of an update to a Workhorse video I did a few weeks ago. I’ve been following this company for a little bit now and the news I’m about to share is interesting to investors or potential investors to the company as they continue to build and grow their brand in the electric vehicle race.

First,
The companies C-series electric delivery vehicles are now eligible for the Hybrid and Zero Emission Truck and Bus Voucher Incentive Program, issued by the California Air Resources Board.
This program is helping companies and individuals buy a zero based emissions vehicle and helps reduce the air pollution in the state. Fun fact, California has around 39 million people alone which exposes them to a large amount of potential customers in California alone.
This is a huge step forward for the company because consumers that are interested in purchasing the electric vehicles can now be eligible for financial assistance through the program to help reduce their cost.
This makes those vehicles eligible for a monetary voucher up to 50K. However, all vouchers are delayed until fall of 2020.
With a financial assistance program offering that much money, it’s just another positive step for Workhorse as they continue to grow.

Now if you’re wondering if electric vehicles are here to stay or if they have a future let me read you a quote from Barron’s. "Electric vehicles whether you like them or not are here to stay. Those are two reasons—besides environmental benefits—that large fleets are going electric. “UPS remains very committed to electrifying its fleet,” UPS tells Barron’s. “With roughly 1,000 electric or hybrid electric vehicles already in operation in cities around the world, UPS expects to continue to lead the charge on electrification of medium-duty vehicles over the next five years."

Second,
Is the Ryder and Workhorse Contract. A few days ago Workhorse announced they are starring to deliver the C-1000 series vehicles to Ryder based on their contract. This contract is around 2,500 vehicles to Ryder’s Fleet and it’s mostly based on a lease agreement.
“COOP is the perfect launch platform for new technology vehicles such as the Workhorse C-Series electric van as it provides customers the ability to try the vehicles in various markets without any long-term commitment,” Ryder Senior Director of Advanced Vehicle Technology & Energy Products Chris Nordh said. I think this is a genius move on Workhorse behalf .This allows customers and business to lease or basically try the vehicle and see who it fits their needs without buying or committing to a long term deal.
While at the same time, is allows Workhorse to show the consumers or potential consumers their product and allow them to continue to build their brand.

Thirdly,
Workhorse is still one of the final four companies waiting the USPS decision on a contract that’s worth around 6 BILLION dollars. The standout thing about them, is Workhorse is the only company that has the all-electric option. Steve Schrader the CFO of Workhorse stated on July 21st, in addition to the gasoline savings, Workhorse vehicles have half the maintenance costs of the current USPS fleet.

Lastly,
Workhorse has been developing and experimenting with drone delivery “Horsefly” in addition to their electric vehicles. The whole COVID-19 has forced companies from UPS to Papa Johns to move towards, or at least have the option of contact less deliveries. I think moving forward companies are going to look at more options such as drone delivery to help retain their customer base and increase their ability to be more innovative.

Overall, I think Workhorse at a stock price around 16.00 dollars is still a decent price with more upside potential. Just in 2020, they have been able to show me a few things I like as an investor.
1. Being innovative and develop a product that consumers and regulations are moving toward.
2. Produce a product built directly for the consumers. Workhorse isn’t faced with any major competition on the electric delivery vans.
3. Increase revenues streams by adding and fulfilling more contracts
4. Be in the running for major contracts, like USPS.

Let me know what you guys think, and please remember to hit the Like and or subscribe button to help the channel out.

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