The electric vehicle industry has grown at a remarkable pace over the course of the past half a decade or so and nowadays it is not only Tesla which is a major player in the market. One of the most interesting companies in the electric vehicle space at this point in time is that of Workhorse Group Inc (NASDAQ:WKHS).

Major Factors to Watch

The company seemed to be in the doldrums for quite a while but over the course of the past months, the Workhorse stock has recorded substantial gains despite the onset of the deadly coronavirus pandemic. It should be noted that plenty of businesses have found it a struggle during this period.

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The coronavirus pandemic has actually proven to be a positive trigger for the electric vehicle industry and many stocks have registered gains in recent times. However, there have been two specific triggers that seem to have benefitted the Workhorse stock. Firstly, the company’s C Series delivery trucks have been certified as zero-emission vehicles by the California Air Resources Board and it goes without saying that it is a major development for Workhorse.

Specifically, the vehicles were awarded the executive order A-445-0003 by the board. On the other hand, this certification could also put Workhorse Group in the frame for a massive $6 billion United States federal government contract for upgrading the long-life vehicles of the United States Postal Service.

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It is believed that Workhorse stands a fair chance of actually winning the contract and at this point, it is only one of the four companies remaining which are still in the fray. Moreover, the company is the only entity that offers a fully electric solution and that could be a major factor in favor of Workhorse. The efficiencies provided by electric vehicles with regards to the last mile could make it easier for the powers that be to actually choose a fully electric solution.

It is becoming increasingly clear that electric vehicles are probably going to be adopted widely and that makes Workhorse a very appealing choice. However, it is not a straightforward bet for investors. It should be noted that all investors and Workhorse’s peers are looking at the same factors. Hence, it could be argued that some bigger entity could step in and grab most of the market share.

For instance, Hindenberg Research, the short seller, has stated that there is an ‘immediate’ downside of as much as 50% in the Workhorse stock. While these challenges are true, it is important to note that Workhorse Group remains an interesting bet in the electric vehicle space. As e-commerce continues to grow, the demand for such delivery solutions is also going to rise. Hence, ultimately a bet on Workhorse might come down to a matter of belief.

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