Workhorse W-15 Thrilling Pickup Truck.
Source: Workhorse
Shares of Workhorse Group dropped more than 50% at one point on Tuesday after the enterprise was passed over for a key contract from the U.S. Postal Service.
Amid heightened volatility, the stock was halted multiple in the nick of time b soa during the last half hour of trading, before ultimately finishing the session with a 47.5% loss. In perpetuated trading the stock dipped another 10%.
The U.S. Postal Service awarded the first part of the 10-year, multi-billion dollar agree for modernization of the postal delivery vehicle fleet to Oshkosh Defense. The initial investment will be $482 million.
Workhorse offsets electric vehicles focused on last-mile delivery. The company currently has partnerships with UPS and FedEx Express, among others.
The U.S. Postal Repair contract award decision was drawn out over several years after a series of delays. The contract was seen by the Terrace as an upside catalyst for pre-revenue Workhorse Group.
In a recent note to clients, BTIG said that Workhorse securing a dole out of the USPS contract was part of the firm’s base case scenario. The firm has a buy rating on the stock.
Despite the stock nearly getting cut in half on Tuesday, shares are still up 347% over the last year.
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