Is Ford about to crush Workhorse Group?

Workhorse Group (NASDAQ: WKHS) has had a tough year, but it looks like the tougher times are behind them. Not only is the company moving away from the C-Series issues it had last year, but the new CEO appears to have the company on track to begin production this quarter. While the calendar's second quarter results were poor, the company also received the first of new chassis from GreenPower Motors which it will use to build the new lineup.

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The lineup is built on GreenPower Motors' (NASDAQ: GP) EV Star cab and chassis combination and the delivery schedule should allow the company to achieve its objectives for the year. Workhorse Group is aiming for up to 250 builds this year, which some analysts say is conservative. The takeaway is that revenue is expected to flourish in the second half and production will ramp up in calendar 2023. The question is whether these moves are too small, too late for the company as Ford embarks on the action of delivery trucks. /p> Ford to Power FedEx Delivery Services?

FedEx (NYSE:FDX) and Ford (NYSE:F) caused a stir in the electric vehicle market when they announced a trial of Ford's e-Transit vans. FedEx aims to fully electrify its fleet by 2040, which could be a bargain deal for Ford and Ford investors. The test includes 10 e-Transit vans in 9 markets focused on a range of weather and road conditions faced by FedEx SameDay City services. According to Brian Phillips, President and CEO of FedEx Office, "FedEx SameDay City is a perfect use case to test the capabilities of the Ford E-Transit." In terms of potential order size, FedEx's ground fleet utilizes over 170,000 vehicles, which could represent over $7.5 billion in sales over the next 18 years.

And Ford's EV plans don't stop there. The company is targeting 2 million annual electric vehicle sales by the end of 2026 and 50% of sales will be electric vehicles by 2030. With annual sales averaging nearly 2 million per year, that puts Ford at around 1 million annual electric vehicle sales, which is a target market leader Tesla (NASDAQ: TSLA) has already achieved. Tesla CEO Elon Musk said the company wants to sell 20 million electric vehicles a year by 2030. The bottom line is that with potential deals like the one with FedEx and the momentum that would build in its wake , it is certain that Ford will not only produce Workhorse Group in terms of production, but also outperform the competition.

There are tailwinds for Workhorse Group

As bleak as the outlook may be, Workhorse Group is not out of the game yet and even has tailwinds to support the stock over the next year. The most obvious is a new purchase order for over 1,000 vehicles over the next 18 months which includes 3 different models. There's also the US Postal Service's decision to increase the pace of its electric vehicle purchases, an increase that could boost Workhorse Group's business, and the passage of the Cut Inflation Act. The new bill not only includes incentives for American-made vehicles such as Workhorse Group trucks, but also additional bonuses for truck manufacturers.

The Technical Outlook: Workhorse Group Consolidates for a Charge

Workhorse Group's stock price has been volatile for the past few weeks, but there's one thing to remember: the market has re-engaged with this stock and it looks like it's going to rise. The market confirmed a floor at the $3 level and is now supporting at the upper $3.50 level, which coincides with the short-term EMA. Assuming the market can keep its feet under it, this stock could easily retest the $5.00 level in the very short term and then possibly hit a new long-term high in the $6-$7 range. Ford may be on the verge of ramping up pickup production, but so is the Workhorse Group and the demand for pickups is greater than they can produce together.