Workhorse Group shares plunge after rival Oshkosh wins USPS deal
Shares of Workhorse Group (WKHS) have plunged 30%, or $9.23, to $22.11 and been halted for volatility in afternoon trading after the U.S. Postal Service announced it awarded a 10-year contract to Oshkosh Defense (OSK) to manufacture a new generation of U.S.-built postal delivery vehicles that "will drive the most dramatic modernization of the USPS fleet in three decades." Under the contract's initial $482M investment, Oshkosh Defense will finalize the production design of the Next Generation Delivery Vehicle, or NGDV, said the USPS in an afternoon press release. Previously, Roth Capital analyst Craig Irwin said that he believed that the longer the contract was delayed, the greater opportunity competitors to Workhorse Group would have to show the USPS other electric vehicles. Workhorse had been the front runner for the $8.1B contract for 165,000 delivery vehicles, but Oshkosh and Ford (F) had also shown the USPS an alternative vehicle solution, Irwin had stated in notes to investors previously.