Investors who speculated that a small company like Workhorse (NASDAQ:WKHS) would win a massive contract from the U.S. Postal Service lost the bet. The stock fell when the USPS chose another company.
Workhorse is appealing the lost bid. This spurred rumors of the electric vehicle supplier of last-mile trucks getting some of the business. In reality, its meeting with the USPS is likely informational. It will find out why it lost the deal and how it could improve on the next bid.
Investors may gamble on WKHS stock getting some of the business. But chances are very low. Workhorse does not have the expertise that the winning bidder, Oshkosh (NYSE:OSK), has. Plus, the USPS did not order 100% EV delivery vehicles. OSK will supply both EV and internal combustion engine vehicles.
Politicians who may have invested in Workhorse are already getting involved. For example, Representative Carolyn Maloney is demanding a thorough review of the award.
Trade WKHS Stock
ARK Invest added to its Workhorse position. That does not mean you should, too. The uncertainties could run for months. While management insists on a USPS deal, it could spend its time instead of looking for other customers. WKHS relied too much on one customer win. Now that it lost, it needs to diversify. It should negotiate with USPS while seeking a wider customer base.
