Workhorse Group Falls Almost 50% After Electric Vehicle Company Bypasses For USPS Contract

Workhorse W-15 Electric Truck.

Source: Workhorse

Shares of Workhorse Group fell more than 50% at one point Tuesday after the company was rejected for a key US Postal Service contract.

Amid increased volatility, the stock paused several times during the last half hour of trading, before ending the session with a loss of 47.5%.

The United States Postal Service awarded the first tranche of the 10-year multi-million dollar contract for the modernization of the fleet of postal delivery vehicles to Oshkosh Defense. The initial investment will be $ 482 million.

Workhorse manufactures electric vehicles focused on last mile delivery. Currently, the company has alliances with UPS and FedEx Express, among others.

The United States Postal Service’s contract award decision dragged on for several years after a series of delays. The contract was seen by The Street as a bullish catalyst for Workhorse Group before earnings.

In a recent note to clients, BTIG said that Workhorse securing a portion of the USPS contract was part of the company’s base case scenario. The company has a buy rating on the stock.

Even though the stock almost halved on Tuesday, the stock is still up 347% over the past year.

Subscribe to CNBC PRO for exclusive information and analysis, and live business day programming from around the world.


Source link