Workhorse W-15 electric pickup.
Source: Workhorse
The shares of Workhorse Group fell by more than 50% on Tuesday after the company was transferred from the US Postal Service for a key contract.
Amid rising volatility, the stock stopped trading several times during the last half hour before finally ending with a 47.5% loss.
The U.S. Postal Service has awarded the first tranche of the $ 10 billion 10-year contract for the modernization of the fleet for delivery vehicles to Oshkosh Defense. The initial investment will amount to $ 482 million.
Workhorse allows electric vehicles to focus on delivery on the last mile. The company currently has partnerships with UPS and FedEx Express, among others.
The granting of the US Postal Service contract decision was postponed over a number of years after a series of delays. The contract is considered by the street as an upward catalyst for Workhorse Group before revenue.
In a recent note to clients, BTIG stated that Workhorse, which acquires a portion of the USPS contract, is part of the firm’s base scenario. The company has a buy rating on the stock.
Despite the fact that the share decreased by almost half on Tuesday, the shares have risen by 347% in the past year.
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