Tuscan Holdings (NASDAQ:THCB) is still waiting for the Microvast SPAC merger to close, but that is not stopping THCB stock from gaining. In fact, shares closed higher by more than 16% yesterday. It looks like a not-so-tiny stumble by Workhorse (NASDAQ:WKHS) brings big things for Microvast. Here is what you need to know.
- Yesterday the United States Postal Service awarded a 10-year, $482 million contract to Oshkosh (NYSE:OSK).
- Many investors were hopeful that Workhorse would win the bid.
- However, through a new partnership, Microvast stands to benefit from the decision.
To start, investors should be familiar with the big news moving THCB stock. Essentially, the United States Postal Service has been promising to electrify its mail carrier fleet for several years. Workhorse was considered a frontrunner in the contract war, but ultimately lost out to Oshkosh. This contract brings with it $482 million and a chance to design and produce the newest mail carrier. It also comes with as much as $5.7 billion in revenue.
In other words, it is a pretty nice win for Wisconsin-based Oshkosh. The company will now get to work finalizing its Next Generation Delivery Vehicle (NGDV), and the fleet should start rolling out in 2023. Importantly, the U.S. Postal Service leaves a few things open. In its press release, it says the fleets could either include battery electric powertrains, or more efficient internal combustion engines.
While Oshkosh has a lot of experience with specialty vehicles, it opens the door for Microvast in a big, and perhaps under-the-radar way.
THCB Stock and Microvast’s Oshkosh Deal
So where do THCB stock and the Microvast SPAC merger come into the story? Well, on Feb. 1, Oshkosh announced that it had entered a joint development agreement with Microvast. Just a few days later, on Feb. 4, it announced a $25 million investment in Microvast. This will be part of its private investment in public equity (PIPE) deal.
As Oshkosh puts it, one area where it could use some extra help is battery innovation. Microvast, a company that has delivered battery solutions to city transit systems, can provide that help. With Oshkosh signing a big contract to electrify mail carriers, it sounds like Microvast will also be playing a role. If Oshkosh goes the battery electric route, it can leverage its ties with Microvast to develop batteries and best outfit the vehicles.
For right now, that means THCB stock should be on your radar. Although shares are dipping on Wednesday, it is very likely a temporary move. Do your own research, and know the Oshkosh-Microvast relationship is quite appealing.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.