Workhorse disclosed the investigations in a regulatory filing, adding that it has not received any subpoena or request for documents from the DoJ. 5, the company had received SEC's letters in mid-October and earlier this month seeking information related to the issue. While Workhorse was orally informed of the DoJ investigation on Nov. Securities and Exchange Commission related to trading in the company's securities leading up to the award of a U.S. PRICE ACTION: In Friday morning trading, shares of Workhorse Group were fractionally higher to $23.94.Nov 8 (Reuters) - Electric van-maker Workhorse Group (WKHS.O) said on Monday it was being investigated by the U.S. and is expected to remain listed on the NYSE and trade under the new ticker symbol "RMO." Upon closing of the transaction, the combined company will be named Romeo Power, Inc. The analyst added that potential third party beneficiaries of an announced award to Workhorse likely include Lordstown Motors, TPI Composites (TPIC) and Romeo Power.Įarlier this week, energy technology company Romeo and RMG Acquisition Corp (RMG), a special purpose acquisition company, announced a definitive agreement for a business combination that would result in Romeo Power becoming a publicly listed company. Irwin noted that Workhorse is the only supplier proposing an EV solution. ROTH SEES POSITIVE OUTCOME FOR WORKHORSE: Roth Capital analyst Craig Irwin said on Friday that he sees a positive outcome for Workhorse for the $8.1B USPS contract, as he thinks an EV is the best fit for the USPS application. A reality check is on its way," added the firm in its tweet. We see the chance of winning a material USPS contract as virtually zero. Hindenburg announced its short via Twitter, stating that it sees "immediate 50% downside." The company "has an astronomical valuation of ~$1.5B despite less than $100k in revenue last quarter. In July, short-selling research firm Hindenburg Research issued a tweet regarding a short position in Workhorse Group. Fuzzy Panda's report cited information from investigators it sent to two Workhorse facilities in September and anonymous sources, including one that it claimed was “intimately familiar” with the postal-contracting processes and Workhorse’s bid.Īdditionally, Fuzzy Panda said that Workhorse's former partner, VT Hackney, backed out due to chronic "critical failures and breakdowns" in test vehicles and that a right-of-first-refusal licensing agreement would make affiliate Lordstown Motors (RIDE), in which Workhorse owns a 10% stake, the primary beneficiary of any postal contract.
Workhorse usps driver#
The firm claimed fraud at Workhorse is "even worse than at Nikola (NKLA)."Īccording to the firm, Workhorse rolled a USPS prototype truck down a hill accidentally after their parking brake failed, causing a union USPS driver to be hospitalized after jumping out of the runaway vehicle, adding that it does not believe Workhorse will be awarded any share of the USPS Next Generation Development Vehicle $3.6B contract and that customers "shut the door" on Workhorse long ago. It also claims a postal driver was injured when a parking brake failed in one of Workhorse’s prototypes.
While Mahindra & Mahindra had been in competition, it said that it does not expect an award.ĬRITICAL REPORTS: On Thursday, short-seller Fuzzy Panda Research alleged Workhorse’s postal-truck prototypes were plagued with problems and exceeded maximum cost guidelines. Other finalists include Oshkosh (OSK) and Turkey-based Karsan Automotive. Workhorse is one of the three remaining applicants for the contract. "NGDV vehicles are an important part of our continuing process to innovate and invest in our future, two core strategies for the organization," USPS said. The due date for responses had previously been pushed back in light of the circumstances of the current COVID-19 pandemic and its impact on Postal Service and supplier operations.
USPS DECISION DUE OCTOBER 13: The Post Office is expected to decide on the $8.1B NGDV production contract on Tuesday, October 13. Shares of Workhorse Group (WKHS) are in focus ahead of next week's expected decision from the United States Postal Service on its selection for the supplier of its Next Generation Delivery Vehicle.
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