Workhorse Group falls nearly 50% after the transfer of the EV company by USPS contract

Shares of the Workhorse group fell more than 50% at some point on Tuesday after the company was transferred by a key U.S. postal service contract.

Amid increased volatility, stocks stopped several times during the last half hour of trading, before ending the session with a loss of 47.5%.

The U.S. Postal Service awarded Oshkosh Defense the first tranche of the $ 10 billion contract to modernize the postal delivery vehicle fleet. The initial investment will be $ 482 million.

Workhorse manufactures electric vehicles focused on last mile delivery. The company currently has partnerships with UPS and FedEx Express, among others.

The decision to award the U.S. Postal Service contract was made for several years after a series of delays. The contract was seen by the street as a positive catalyst for the pre-income Workhorse group.

In a recent note to clients, BTIG said Workhorse, which insured a portion of the USPS contract, was part of the firm’s base case scenario. The company has a stock purchase rating.

Although shares fell nearly halfway on Tuesday, shares continue to rise 347% from last year.

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