Monday, March 1

Workhorse Group drops almost 50% right after EV business is handed in excess of for USPS contract

Workhorse Group drops almost 50% right after EV business is handed in excess of for USPS contract


Workhorse W-15 Electric powered Pickup Truck.

Resource: Workhorse

Shares of Workhorse Group dropped far more than 50% at just one issue on Tuesday immediately after the organization was handed above for a critical contract from the U.S. Postal Company.

Amid heightened volatility, the stock was halted many times during the very last half hour of trading, before eventually ending the session with a 47.5% loss. In prolonged investing the stock dipped an additional 10%.

The U.S. Postal Assistance awarded the initially aspect of the 10-year, multi-billion greenback contract for modernization of the postal shipping and delivery automobile fleet to Oshkosh Defense. The first financial investment will be $482 million.

Workhorse can make electric cars concentrated on last-mile shipping. The firm at this time has partnerships with UPS and FedEx Categorical, amongst other individuals.

The U.S. Postal Support contract award final decision was drawn out around quite a few yrs just after a collection of delays. The deal was observed by the Avenue as an upside catalyst for pre-revenue Workhorse Team.

In a current note to consumers, BTIG said that Workhorse securing a portion of the USPS deal was element of the firm’s foundation scenario circumstance. The business has a obtain rating on the inventory.

Even with the inventory almost acquiring cut in 50 percent on Tuesday, shares are continue to up 347% above the previous calendar year.

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