Workhorse (NASDAQ:WKHS) stock is taking off on Monday following a spree of news concerning awards for United States Postal Service (USPS) trucks.
Workhorse lost its bid to supply electric vehicles (EVs) to the USPS. Instead, the award went to Oshkosh (NYSE:OSK) and its combustion trucks. However, that doesn’t mean the company won’t be making them anyway.
Members of the House of Representatives have concerns over the award to Oshkosh. That includes the fact that a 524,400-share purchase for OSK stock. The deal was made after-hours shortly before the company was awarded the USPS truck deal.
An investigation is being launched to look into the matter and it could result in Workhorse gaining at least some of the truck orders for the USPS. That’s part of the reason investors are taking an interest in WKHS stock today.
Another is a new bill that would give WKHS a benefit over OSK in USPS truck production. The bill calls for 75% of the USPS fleet to be replaced with EVs. Democrat Representative Jared Huffman of California is behind this bill.
WKHS stock is seeing heavy trading on today’s news. As of this writing, more than 35 million shares of the stock have changed hands. That’s a hefty spike compared to its average daily trading volume of roughly 20 million shares.
It’s also worth noting that EV stocks in general are seeing an increase today. It could be that part of the positive movement for WKHS stock is connected to that.
WKHS stock was up 14.1% as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.