Workhorse Group Inc.
said Thursday that it met with U.S. Postal Service representatives on March 3, to discuss why the electric vehicle maker missed out on a Next Generation Delivery Vehicle contract, which was awarded to Oshkosh Corp.
Workhorse said it can’t disclose details of the discussion at this time, but said it plans to share information when permitted. The stock tumbled 9.7% toward a more-than 8-month low in afternoon. Missing out on the USPS contract had sent Workhorse’s stock plunging 47.5% on Feb. 23 to $16.46, and the stock has lost another 18.2% since then, putting it on track for the lowest close since June 26, 2020. “Yesterday’s meeting with the USPS marked the first step in what we expect may be a prolonged process to explore our options and possibly pursue further action related to our NGDV bid,” said Chief Executive Duane Hughes. “We will continue to follow the proper due course procedures as defined by the USPS and will also look to other options available to us.” He said legal and corporate advisory firms were retained to identify and pursue its options. Workhorse’s stock has now lost 39.0% over the past three months, while Oshkosh shares have rallied 26.9% and the S&P 500
has gained 2.0%.
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