Workhorse W-15 electric pickup.
Source: Workhorse
Shares of Workhorse Group fell more than 50 percent on Tuesday at a time after the company was transferred to a key contract from the U.S. Postal Service.
Against the background of increased volatility, the stock was stopped several times in the last half hour of trading, before finally ending the session with a loss of 47.5%.
The US Postal Service has awarded the first part of the 10-year, $ 1 billion contract to upgrade the fleet of postal delivery vehicles to Oshkosh Defense. The initial investment will be $ 482 million.
Workhorse produces electric vehicles focused on last mile delivery. The company currently has partnerships with UPS and FedEx Express, among others.
The decision to award the US postal service contract was made several years after a series of delays. The contract was seen by Street as a positive catalyst for Workhorse Group before revenue.
In a recent note to customers, BTIG said that Workhorse, which insures part of the USPS contract, is part of the company’s baseline scenario. The company has a buy rating on the stock.
Despite the fact that March was almost reduced to half Tuesday, shares are still up 347% in the last year.
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