If you want to take a share of the boom in the electric car boom, and at the same time can afford the stock that has grown substantially, you must think outside the box. Or, to be more precise, consider companies that specialize in electric logistics vehicles, such as Workhouse Group (NASDAQ: WKHS). Although WKHS stock has risen 750% this year, it is still a reasonably priced stock.
WKHS is expected to provide the U.S. Postal Service with a huge contract worth US$6 billion for electric logistics vehicles.
Competition of electric logistics vehicles
Everyone knows the story of electric vehicles, and everyone knows that electric vehicles suddenly become more and more popular, which drives the stocks of electric vehicle manufacturers to soar. Gasoline-powered cars will not disappear in the short term, but electric cars will eventually become mainstream. Even electric pickup trucks will soon enter the showroom.
For investors who want to get a share of this craze, there are two problems. First, the stock prices of these companies are becoming expensive. The second is a disturbing feeling that battery-powered electric cars may not eventually replace gasoline cars. Because the charging time is too long, the cruising range is limited. Many people think that battery-powered electric vehicles are just a stopgap measure, and hydrogen fuel cell-powered electric vehicles are the ultimate goal in the future. They have a longer range, and it takes 5 minutes to fill up instead of over an hour. The most popular new electric pickup truck in 2020 actually offers a hydrogen fuel cell option, which greatly increases its driving range.
Workhorse Group produces battery-powered electric vehicles. However, Workhorse focuses on logistics delivery fleets. The main models C650 and C1000 are "made specifically for last-mile delivery." "Lower mileage and longer refueling time will not present the same challenges in this application. Delivery vans will not travel hundreds of miles between cities, and they can be plugged in and fully charged at night.
Although hydrogen fuel cell technology may begin to enter the consumer market and eventually replace battery technology, it poses less threat to Workhorse’s target market.
U.S. Postal Service contract
In the first half of 2020, the price of WKHS shares has been at $3 Hovering left and right, and then suddenly soared in June. By the end of June, WKHS's stock price had exceeded its all-time high. Although there was a brief decline in the first few weeks of July, WKHS has resumed its rise. At present, the stock price has exceeded It’s $26. As of this writing, its 2020 gain is close to 765%. The overall halo effect of
investors’ enthusiasm for electric car stocks contributed to the stock’s sharp rise. It joined the Russell 3000 Index and gained U.S. Postal Service has raised $70 million in institutional financing. But it is the U.S. Postal Service that is really driving the growth.
U.S. Postal Service is replacing its aging gas transportation vehicles. It needs 140,000 new trucks and the contract value is as high as $6 billion. The postal responsibility-finally One mile delivery is exactly the design goal of Workhorse’s electric delivery truck. At this point, several bidders withdrew from the contract, leaving Workhorse and two other companies to participate in the finals. One provides plug-in hybrid power, The other is a traditional gasoline-powered truck. Workhorse is the only competitor that provides pure battery-powered electric solutions. This means that its trucks have the advantages of low maintenance costs, much lower fuel costs, zero emissions and no noise.
Conclusion
WKHS received an “A” rating in my portfolio grader. For battery-powered electric vehicles, the price of $26 is relatively cheap, but Workhorse focuses on last-mile commercial delivery, so it will not be affected by hydrogen fuel Technology poses a long-term threat to consumer electric car manufacturers. What if Workhorse gets the postal service contract? In addition to huge revenue growth, other courier companies will also take note. This year's WKHS stock price increase may be just the beginning.
: Louis Navellier, US Stock Research Agency (public number: meigush)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-