Workhorse Group drops nearly 50% after EV company moves for USPS contract

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Workhorse W-15 Electric Pickup Truck.

Source: beast of burden

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

Amid heightened volatility, the stock was halted several times in 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 postal delivery vehicle fleet to Oshkosh Defense. The initial investment will be $ 482 million.

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Workhorse manufactures electric vehicles focused on last mile delivery. The company currently has partnerships with UPS and FedEx Express, among others.

The US Postal Service’s decision to award the contract was spread over several years after a series of delays. The contract was seen by the streets as a catalyst on the rise for the pre-income Workhorse group.

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

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Although the stock was almost halved on Tuesday, stocks are still up 347% from a year ago.

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