Home Business Workhorse Group drops practically 50% after EV firm is handed over for...

Workhorse Group drops practically 50% after EV firm is handed over for USPS contract


Workhorse W-15 Electrical Pickup Truck.

Supply: Workhorse

Shares of Workhorse Group dropped greater than 50% at one level on Tuesday after the corporate was handed 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 finally ending the session with a 47.5% loss.

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

Workhorse makes electrical autos centered on last-mile supply. The corporate presently has partnerships with UPS and FedEx Categorical, amongst others.

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

In a current be aware 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 ranking on the inventory.

Regardless of the inventory nearly getting lower in half on Tuesday, shares are nonetheless up 347% over the past 12 months.

Subscribe to CNBC PRO for unique insights and evaluation, and stay enterprise day programming from all over the world.


Please enter your comment!
Please enter your name here