What's Going On With Workhorse (WKHS) Stock

Workhorse Group Inc WKHS shares are trading lower by 4.91% to $1.16 going into the close of Friday's session. The stock is falling Friday session despite a lack of company-specific news. Several EV stocks on Thursday fell in symapthy with peer Tesla Inc after the company reported second-quarter earnings results.

What Happened With Tesla Earnings?

Tesla's second-quarter revenue rose 47% YoY to $24.93 billion, surpassing the consensus estimate of $24.48 billion. Quarterly earnings stood at 91 cents per share, exceeding the expected 82 cents per share.

Operating margins for second-quarter were 9.6%, and gross margins were 18.2%, down from 25% YoY. The market closely monitored the margin results due to recent price cuts...Read More

What Else?

Workhorse stock has seen marked weakness following the United States Postal Service (USPS) situation in 2021 involving a high-profile contract called the Next Generation Delivery Vehicle (NGDV) program. The NGDV program aimed to replace the aging fleet of USPS delivery vehicles with new, modern and more fuel-efficient vehicles to improve mail and package delivery services.

Workhorse was one of the contenders for the NGDV contract and was seen as a leading candidate to win it. Workhorse is an electric vehicle manufacturer with a focus on producing electric delivery vans, and securing the USPS contract was considered a crucial milestone for the company's growth and financial stability.

However, in February 2021, the USPS announced that it had selected Oshkosh Corporation, a traditional manufacturer of combustion engine vehicles, as the contract winner for the NGDV program.

The loss of the USPS contract had a significant impact on Workhorse's stock price, which experienced a sharp decline in the aftermath of the announcement.

Investors were disappointed by the outcome, as securing the contract would have provided Workhorse with a substantial revenue stream and enhanced its credibility in the electric vehicle market.

According to data from Benzinga Pro, WKHS has a 52-week high of $4.73 and a 52-week low of $0.71.