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Workhorse Falls as Postal Service Again Delays EV-Fleet Decision

Workhorse Group fell after a report that the U.S. Postal Service again delayed a decision to award contracts for new electric mail trucks.
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Workhorse Group  (WKHS) - Get Workhorse Group Inc. Report shares fell after a report that the U.S. Postal Service again delayed a decision to award contracts for new electric mail trucks.

The news sent other stocks in the electric-vehicle sector tumbling, including Tesla  (TSLA) - Get Tesla Inc 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."

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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.