Workhorse Group drops nearly 50% after EV company is passed over for USPS contract

Shares of Workhorse Group dropped greater than 50% at one level on Tuesday after the company was passed over for a key contract from the U.S. Postal Service.

Amid heightened volatility, the inventory was halted a number of instances over the last half hour of buying and selling, earlier than in the end ending the session with a 47.5% loss. In prolonged buying and selling the inventory dipped one other 10%.

The U.S. Postal Service awarded the primary a part of the 10-year, multi-billion greenback contract for modernization of the postal supply car fleet to Oshkosh Defense. The preliminary funding will probably be $482 million.

Workhorse makes electrical autos targeted on last-mile supply. The company at the moment has partnerships with UPS and FedEx Express, amongst others.

The U.S. Postal Service contract award resolution was drawn out over a number of years after a collection of delays. The contract was seen by the Street as an upside catalyst for pre-revenue Workhorse Group.

In a latest observe to purchasers, BTIG stated that Workhorse securing a portion of the USPS contract was a part of the agency’s base case situation. The agency has a purchase score on the inventory.

Despite the inventory virtually getting lower in half on Tuesday, shares are nonetheless up 347% over the final yr.

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