Workhorse W-15 pickup truck.
Source: Workhorse
Workhorse Group’s shares fell more than 50% at one point on Tuesday after the company was passed over for a major contract with the US Post Office.
Amid increasing volatility, the stock was stopped several times during the last half hour of trading, before ending the session with a loss of 47.5%.
The US Postal Service has awarded the first part of the 10-year multi-billion dollar contract for the modernization of the fleet of postal delivery vehicles to Oshkosh Defense. The initial investment will be US $ 482 million.
Workhorse manufactures electric vehicles with a focus on last mile delivery. The company currently has partnerships with UPS and FedEx Express, among others.
The decision to award the US Post Office contract was made over several years, after a series of delays. The contract was seen by Street as a positive catalyst for the pre-revenue Workhorse Group.
In a recent note to customers, BTIG said that Workhorse securing a portion of the USPS contract was part of the company’s basic scenario. The company has a buy rating for the shares.
Although stocks almost fell by half on Tuesday, stocks are still up 347% last year.
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