Workhorse Group (NASDAQ: WKHS) expects a “prolonged process” to alter the U.S. Postal Service’s decision to award next-generation mail truck business to defense contractor Oshkosh Truck Corp. (NYSE: OSK).
The Loveland, Ohio-based Workhorse was stunned last week when the Postal Service awarded a 10-year contract initially worth $482 million to the Wisconsin company. Oshkosh makes military vehicles, fire trucks and ambulances.
The Next Generation Delivery Vehicle (NGDV) business came down to three finalists. Workhorse offered the only battery-electric powered vehicle (EV). That was consistent with President Joe Biden’s executive order to make all 645,000 federal fleet vehicles zero-emissions EVs.
Investors had bid up Workhorse shares to record levels. They expected it would get at least a piece of the multibillion-dollar contract. When that didn’t happen, Workhorse shares lost 50% of their value in two days. Analysts, in turn, cut their target prices.