What happened
Shares of Workhorse Group (WKHS +0.00%), which is developing electric delivery trucks and bidding on a big $6 billion contract to upgrade the U.S. Postal Service (USPS) delivery fleet, were galloping ahead 9.5% as of 1:35 p.m. EDT on Friday.
Image source: Getty Images.
So what
Workhorse is the "best fit" to win the USPS contract, Roth Capital Partners says in a note covered on TheFly.com today. And indeed, because Workhorse is the only company in the three teams of bidders offering a fully electric delivery truck, it would appear to be the best aligned to reduce future maintenance costs for the Postal Service, and make future fuel costs more predictable as well.
What's more, the contract in question -- long believed to be worth in the neighborhood of $6 billion -- could actually end up paying $8.1 billion in taxpayer money to the winner(s), TheFly says.
Now what
Whether Roth is right or wrong in its prediction that Workhorse will win the contract remains to be seen, but investors won't have to wait long for the answer. The USPS is expected to announce its winner, or winners, on Oct. 13.
