Workhorse Group drops nearly 50% after EV company is passed over for USPS contract
Workhorse W-15 electric pickup.
Workhorse Group’s shares fell more than 50% Tuesday after the company was turned over for a key U.S. Postal Service contract.
Amid the heightened volatility, the stock halted multiple times in the last half hour of trading before finally ending the session with a 47.5% loss. In extended trading, the stock fell another 10%.
The US Postal Service awarded Oshkosh Defense the first part of its 10-year multi-billion dollar contract to modernize its fleet of postal delivery vehicles. The initial investment will be $ 482 million.
Workhorse makes electric vehicles that focus on last mile delivery. The company currently has partnerships with UPS and FedEx Express, among others.
The contract award decision for the US Postal Service was made after a series of delays over several years. The deal was seen by the street as an upward catalyst for the Workhorse Group ahead of sales.
In a recent announcement to customers, BTIG said that Workhorse’s securing of part of the USPS contract was part of the company’s base case. The company has a Buy recommendation for the stock.
Though the stock almost halved on Tuesday, stocks are still up 347% over the past year.
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