Avoid Workhorse -- This Electric Vehicle Company Is a Better Investment
Electric vehicle (EV) company Workhorse Group (NASDAQ: WKHS) recovered some lost stock value last month as it prepares a lawsuit to win back a $482 million U.S. Postal Service (USPS) contract that slipped through its fingers earlier this year. Its stock price also surged in early June when it briefly achieved "meme stock" status on the Reddit WallStreetBets online discussion board, though it failed to gain the lasting traction of the bigger meme stocks.
While Workhorse could triumph in the Postal Service legal contest eventually, another sector company looks bullish for EV investors based on its current merits rather than on its hypothetical future successes: Magna International (NYSE: MGA).
On paper, Workhorse has several sources of future income lined up. It has a private sector order for 6,320 electric delivery trucks from Pride Group Enterprises. If its June 16 legal complaint to capture an initial $482 million production design contract awarded to Oshkosh Corp. (NYSE: OSK) succeeds, it would also have an inside track to a broader $6 billion in total purchases of electric USPS delivery vehicles over 10 years. However, while either of these could yield profits in the future, Workhorse has delivered very few vehicles to date.
Source Fool.com
