Workhorse Group (WKHS) lost the race for a key contract with the U.S. Postal Service to a unit of Oshkosh (OSK), which reportedly partnered with Ford (F) on the bid. Workhorse stock plunged.
X
{“@context”:”https://schema.org”,”@type”:”VideoObject”,”name”:”Is It Time To Get Into u2014 Or Out Of u2014 The Stock Market?”,”description”:”How do you know if now is a time to buy stocks u2013 or a time to take defensive action and reduce your exposure? Start by understanding which of three possible stages the market is currently in.”,”thumbnailUrl”:”https://www.investors.com/wp-content/uploads/2021/02/z1rMJ3Gz-640×360.jpg”,”contentUrl”:”https://content.jwplatform.com/manifests/z1rMJ3Gz.m3u8″,”uploadDate”:”2021-02-22T19:13:59+0000″,”duration”:”PT89.58S”,”author”:”MATTHEW GALGANI”,”publisher”:{“@type”:”Organization”,”name”:”Investor’s Business Daily”,”logo”:{“@type”:”ImageObject”,”url”:”https://www.investors.com/wp-content/uploads/2020/06/ibd-logo.png”},”url”:”https://www.investors.com”},”keywords”:””}
The USPS awarded Oshkosh Defense a deal to deliver 50,000-165,000 battery-electric and low-emission combustion-engine vehicles over 10 years, according to a news release, which described it as the Postal Service’s “first large-scale fleet procurement in three decades.”
The postal agency will pay Oshkosh $482 million for initial engineering and factory buildout ahead of production of the “next-gen” delivery vehicles. The contract to build the next mail trucks is estimated to be worth more than $6 billion.
Production is expected to begin in 2023, the release said.
Investors in Workhorse, a small electric van company out of Ohio, had pinned their hopes on the postal contract. Many saw the contract as a home run that would put Workhorse on the path to profitability.
After several delays tied to which vehicles to replace its aging fleet of trucks for mail delivery, the postal service awarded the 10-year contract to Oshkosh Tuesday. That comes nearly a month after President Biden sought to electrify government fleets.
IBD Live: A New Tool For Daily Stock Market Analysis
Workhorse Stock
Shares cratered 47.5% to close at 16.47 in Tuesday’s stock market trading, undercutting both the 50- and 200-day lines. Oshkosh stock added 0.8% in late trade to a 6.1% gain in the regular session. Ford closed down a fraction.
Lordstown Motors (RIDE), which is partly owned by Workhorse, dived 13.4%.
Last June, Workhorse gained key certification putting its next-gen all-electric vans for last-mile deliveries on the path to commercialization. Workhorse stock soared on the news, with both UPS (UPS) and the USPS seen as key customers.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
YOU MAY ALSO LIKE:
Is Tesla Stock A Buy Right Now? Here’s What Earnings, Charts Show
Why This IBD Tool Simplifies The Search For Top Stocks
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
The post Workhorse Stock Dives After Losing Massive USPS Fleet Upgrade Deal appeared first on Investor's Business Daily.
————————
Originally published at https://www.investors.com/news/workhorse-stock-sinks-usps-awards-vehicle-contract-oshkosh/ on .
