Shares of Workhorse Group, Loveland, Ohio, at last check fell 13% to $14.31. Workhorse has dropped 35% over the past month. Shares of truck maker Oshkosh, based in Oshkosh, Wis., added 6.1% to $116.34.
The Oshkosh defense unit won the deal for “a new generation of U.S.-built postal delivery vehicles that will drive the most dramatic modernization of the USPS fleet in three decades,” the USPS said in a statement.
The vehicles “will be equipped with either fuel-efficient internal combustion engines or battery electric powertrains and can be retrofitted to keep pace with advances in electric vehicle technologies,” the USPS said.
Oshkosh will assemble 50,000 to 165,000 of them over 10 years.
Workhorse Group isn’t giving up on the contract. “The company has requested, pursuant to the bid process rules, additional information from the USPS and is awaiting a response at this time,” it said.
“The company intends to explore all avenues that are available to non-awarded finalists in a government bidding process.”
Analysts had a negative reaction regarding Workhorse Group after the USPS decision. Oppenheimer analyst Colin Rusch downgraded the stock to perform from outperform, without a price target.
In addition to the USPS decision, the company has a difficult supply chain, thanks to the COVID pandemic. He expects Workhorse won’t reach positive Ebitda until 2023, a year beyond the company’s most recent forecast.