The news sent other stocks in the electric-vehicle sector tumbling, including Tesla (TSLA) - Get Report. But Workhorse is the only contract bidder offering an all-electric option to replace the agency's iconic white right-hand-drive delivery trucks.
"The covid-19 pandemic previously resulted in the expected production award being pushed to the end of 2020," the USPS told The Wall Street Journal.
"However, amid continuing covid-19 concerns, and in order to provide for capital investment activities and required approvals, the program schedule has been revised and a decision is now planned for quarter two of fiscal year 2021."
Workhorse shares at last check dropped 19% to $20.37. The stock on Wednesday has traded down as much as 25% to $18.93.
This would be the second time the federally owned postal service has delayed its decision on choosing a firm to update its fleet.
Following the first delay, Roth Capital analyst Craig Irwin in October downgraded Workhorse shares to hold from buy and cut his price target to $19 from $27.