I'm not going to write about WKHS possibly winning back the USPS contract, or the fact that 36% of the float is currently shorted – I want to focus y'all's attention on something else. Drones. 🙂
I used to work in logistics. The "last mile delivery" is a massive pain in the ass, and it's the thing that takes up the most resources and energy, when all the trucks/vans/etc have to get your stuff from the delivery hub to your front door. Ever had a package that got delivered too late or to your neighbor instead of your porch? That's a last mile delivery glitch. Every company out there is brainstorming ways to deal with it and make it faster and cheaper (that's why UPS trucks don't have doors: it costs them a few precious seconds), but there's only one surefire solution: drones.
Amazon is currently developing its own drones, and it won't be sharing its tech with anyone else. (They're many things, but they're not stupid.) There's only one other company that's working on drones and that will contract its services to Amazon's competitors – and that's WKHS.
Just some basic facts:
- WKHS has electric vans that will work together with their electric delivery drones. That's called vertical integration, and that's how you print money. 🙂
- Their drones (affectionately called "Horsefly") can lift up to 10 lbs and fly up to 10 miles. That means a single truck parked in a good location can unleash a bunch of drones that will fly into multiple directions and deliver all the packages fast – way more efficiently than a puny human who darts from place to place. (The so-called "traveling salesman" problem.)
- WKHS has a contract with UPS for 950 electric trucks. They'll test the first 50, and if all goes well, they'll buy the other 900. That's only the beginning, since their competitors will likely want in on it too.
- The WKHS drones are currently undergoing FAA certification: if they get it (and I strongly suspect they will), it'll be in the second half of 2022 or early 2023. Amazon already got their drones FAA-certified, so I'm guessing their competitors will be hungry to get in on it too.
- Trucks -> drones -> contracts -> sweet, sweet cash flow.
Like I said, even without all the short-squeeze/USPS contract shenanigans, the truck+drone angle alone makes WKHS a first mover in a field that's currently completely monopolized by Amazon. If WKHS doesn't get bought out entirely (the market cap is $1.6 billion, which is chump change for all the big players), they're gonna be selling their vans and drones (which work great together) left and right.
Full disclosure: I own a lot of WKHS stonk and some LEAP calls – sharing my own DD here because I like the stock. 🙂
SEC intern, have a banana 🍌 and ask your bosses how in the ever-loving fuck Oshkosh managed to get the USPS contract without a single electric vehicle on their hands.
tl;dr: 🦍 ❤️ 🐴 ❤️ 🚚 ❤️ 🚁 🍌 🍌 🍌 🍆 💦 🚀 🚀 🚀 🌖 😎
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