Workhorse W-15 electric pickup truck.
Shares of Workhorse Group fell more than 50% on Tuesday at one point after the company was passed over for a major U.S. contract. Postal Service.
Amid heightened volatility, the stock was shut down several times during the last half hour of trading, before finally closing the session with a loss of 47.5%.
The U.S. Postal Service awarded Oshkosh Defense the first installment of the multi-billion dollar 10-year contract to modernize its mail delivery fleet. The initial investment is $ 482 million.
Workhorse makes electric vehicles aimed at delivery over the last mile. The company currently has partnerships with UPS and FedEx Express, among others.
The award decision of the U.S. Postal Service was drafted after a series of delays over several years. The contract was seen by The Street as a positive catalyst for the Workhorse Group before revenue.
In a recent note to customers, BTIG said that Workhorse securing part of the USPS contract was part of the company’s base case scenario. The company has a buy rating on the stock.
Despite stocks nearly halving on Tuesday, stocks are still up 347% over the past year.
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