I Bought $1000 of WKHS Stock Today (Electric Delivery Van Company)

if you have been paying attention to the news or watching any of my videos lately. You are well aware that stocks like Tesla and Nikola have seen huge price increases lately with all the hype surrounding electric vehicles. And it seems like all you have to do as a CEO is simply mention the words electric vehicle and your stock price will double. Therefore it’s no surprise that it is getting harder and harder to find reasonably priced stocks of electric vehicle manufacturers. But today I bring you a stock that has been largely flying under the radar in this electric vehicle market segment that I think is still reasonably valued at the moment. And that stock is workhorse. Ticker symbol WKHS. And I apologize if this video feels rushed but I wanted to get this video out asap because people are starting to hear about this stock and the price is going up dramatically. And waiting even a day means missing out on huge gains. For me, I was unable to purchase shares on friday when the stock went up 15 percent that day which meant I had to wait until today, Monday. And guess what, workhorse is up 40 percent as of this morning. But I’m still a buyer even after today’s big price jump. So for me, I wanted to explain why I’m buying workhorse and what the future holds for workhorse stock.

So let’s explain what workhorse does for people that are unfamiliar with the company. Workhorse manufactures and sells battery electric vans for last mile delivery called the C-series. And they successfully passed federal safety tests just last week. Which means they can now start delivering these vans to their customers. These customers include delivery companies such as UPS, DHL, and Ryder with UPS ordering 1060 vans. The company also has proprietary fleet tracking and route planning software so delivery companies can easily manage and optimize their fleets. The company has also invested heavily in unmanned drones that will deliver small packages straight to your front porch. On top of that, workhorse licensed 12.2 million dollars worth of proprietary tech to lordstown motors to help them build their electric pickup truck, the endurance. With an agreement to receive a royalty for every pickup sold. Kevin Oleary would be proud. Additionally workhorse received a 10 percent stake in lordstown motors as part of the agreement.

I think this is an attractive entry point because Workhorse is actually starting to sell their electric delivery vans to customers. Which will bring in revenue and allow them to invest that capital back into other growth products. And really this is the main reason I am not a big fan of Nikola, the other electric vehicle company. And why I am choosing to buy Workhorse instead. Nikola doesn’t have plans to start manufacturing any products until 2023. That is 3 years from now. Which is fine but that is a long time to go without any revenue coming in. And honestly they don’t need more money at this point. Trevor Milton, their CEO just bought a 32 million dollar ranch in Utah. So they have plenty of money to start manufacturing something and until they can do that I am not willing to give them any of my money.

But with Workhorse, I feel like the opposite is true. The biggest problem facing workhorse is lack of capital. And if we compare workhorse’s valuation to that of other electric vehicle manufacturers Tesla and Nikola, there is a lot of room for growth. Tesla has a market cap of 200 billion dollars and Nikola has a market cap of 25 billion dollars. So when I saw workhorse stock had a valuation under 1 billion dollars in this high growth segment of the market. I knew that this was a company that still had a lot of room to run. For example, if Workhorse can go from a 1 billion dollar valuation up to 25 billion, where Nikola is currently at, that would mean a 2500 percent return. Which means that my 1000 dollar investment would be worth 25,000 dollars. And keep in mind that Nikola has been able to achieve a 25 billion dollar valuation despite not having manufactured a single product yet. So basically, Nikola is a company with an idea and some working prototypes that is now valued more than ford. Which shows you how much growth potential there is in the electric vehicle market right now.

Something else I like about workhorse stock is that instead of trying to jump into the crowded consumer car market, they are instead selling to delivery companies. And they also own a 10 percent stake in lordstown motors which is only selling it’s electric pickup truck, the endurance to companies as a fleet vehicle. Also keep in mind that the technology used in the endurance pick up truck was licensed from workhorse and that workhorse gets a royalty from the sales of the endurance if it is a huge success. Therefore buying workhorse stock is a great way to take advantage of any successes lordstown motors has since lordstown motors is not a publicly traded company. And average retail investors like you and me cannot invest in it.

Видео I Bought $1000 of WKHS Stock Today (Electric Delivery Van Company) канала Justin Scott