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Workhorse Stock Slips After Withdrawal of Protest of USPS Bid

'[The] best way for us to work with any governmental agency is through cooperation, not litigation,' Workhorse says.

Workhorse  (WKHS) - Get Workhorse Group Inc. Report shares fell on Wednesday after the electric-truck maker said it withdrew its complaint about being passed over for a contract from the U.S. Postal Service.

The USPS awarded the contract for the next-generation delivery vehicle to Oshkosh Corp.  (OSK) - Get Oshkosh Corp Report instead. Some analysts speculated the decision was politically motivated.

“Since I joined the company six weeks ago, we have been conducting a deep and intensive overview of all aspects of our business, including an examination of the history of our USPS bid and subsequent protest filing,” Workhorse Chief Executive Rick Dauch said in a statement.

“The federal government has announced its intention to replace its fleet with electric vehicles, and we believe that the best way for us to work with any governmental agency is through cooperation, not through litigation.

“By withdrawing our protest, we can also better focus our time and resources on initiatives that we expect will be more productive for our company.” 

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The protest was filed at the U.S. Court of Federal Claims in June.

Loveland, Ohio-based Workhorse recently traded at $8.17, down 3.4%. The stock has slumped 45% in the last three months.

In August, Workhorse reported a narrower second-quarter loss but missed revenue forecasts and said it needed to increase its vehicles' payloads.

Workhorse Group posted a net loss of $43.6 million, compared with net loss of $131.3 million a year earlier. The company didn't provide a per-share breakdown of the losses.

Sales rose to $1.2 million from $91,942 a year ago, while the FactSet analyst consensus called for $5.4 million.