Workhorse Group Inc. (NASDAQ: WKHS) shares were trading slightly higher Monday following the Company’s fourth quarter 2020 earnings call after announcing a net profit of USD 280.5 Million. Investors were far more interested in what direction Workhorse would take following losing the U.S. Postal Service’s NGDV (Next Generation Delivery Vehicle) contract worth USD 6 Billion to Oshkosh Corp (NYSE: OSK) and Ford (NYSE: F).
As Workhorse faces backlash and threats of legal action due to allegations of misleading investors, CEO Duane Hughes committed to challenging the Postal Service’s decision and announced that the two parties are scheduled to meet face to face on March 3rd. As per the contract, earlier reports suggested that of the 50,000 to 165,000 vehicles that are to be developed for the U.S. Postal Service in the next decade, an estimated 75% of the fleet would be required to be electric powered. Postmaster Louis Dejoy, however, seemed to contradict these reports by suggesting that up to 90% of the new fleet would be gas powered. Other reports suggest that members of the House of Representatives are preparing to push back against the decision by the Postal Service. Earlier Monday, Ohio Democrat Rep. Tim Ryan commented on the matter in a tweet, “The @USPS has the largest fleet of government-owned vehicles. If we are going to electrify the government fleet like @POTUS says, we need to start with USPS. Yet Postmaster DeJoy says new USPS vehicles will be 90% gasoline. That’s unacceptable. This contract needs re-examined”.