Electric-vehicle maker Workhorse Group Inc. plunged on Tuesday, triggering trading that is multiple, after having a key U.S. Postal provider contract that some had expected it to win went along to rival Oshkosh Corp. rather.
The missed opportunity arrived as being a big blow for Workhorse investors, sending the stocks 47% reduced in ny, the decrease that is steepest since October 2011. Workhorse didn’t straight away answer needs for comment.
Shares continued to fall in after-hours trading, losing 10%. Oshkosh, which rose 6.1% into the session that is regular gained up to 17% post-market.
The USPS stated that as part of the contract that is 10-year Oshkosh Defense will manufacture postal delivery automobiles, that will drive the “most dramatic modernization associated with the USPS fleet in three years.” Under the award’s initial $482 million investment, Oshkosh will finalize the style associated with vehicle for package and mail distribution, and certainly will construct 50,000 to 165,000 of them throughout the agreement duration.
The cars will likely to be built with either fuel-efficient combustion that is interior or battery-electric powertrains, USPS said in a statement.
The contract could be worth more than $5.7 billion in income over its lifespan that is 10-year Bloomberg Intelligence analyst Christopher Ciolino.
In October 12 months that is final quick vendor Fuzzy Panda Research had alleged that Workhorse destroyed its chances of landing the much-anticipated contract after its design and manufacturing led to numerous critical failures within the prototype USPS trucks. Workhorse had declined to touch upon the report at that time. Electric-vehicle maker Workhorse Group Inc. plunged on Tuesday.