WKHS Stock Price and News: Workhorse Group Inc extends losses after losing out on USPS contract

NASDAQ:WKHS investors were devastated on Tuesday as the USPS delivery truck refresh contract that was long thought to be Workhorse Group’s to lose, was awarded to another firm. Shares reacted appropriately and extended that slide on Wednesday as the stock fell a further 8.11% to close the trading session at $15.13. The stock has rebounded slightly in after-hours trading, thanks to a report that Ark Invest has started a position in Workhorse at its now discounted price. In anticipation of the announcement, Workhorse recently soared to a new all-time high of $42.96, but has now dropped by nearly 65% since. 

The USPS delivery truck contract is valued at nearly $6 billion, and Workhorse investors were licking their chops at the prospects. But on Tuesday, USPS announced that it would be awarding the contract to Oshkosh (NYSE:OSH) which will now provide the federal agency with 50,000 to 165,000 Next Generation Delivery Vehicles (NGDVs) over the next decade. The report sent shares of Workhorse into freefall as the company shed nearly 50% of its price over the past two trading days. 

WKHS stock forecast

There were rumours in 2020 that Workhorse Group had in fact little to no chance of landing the USPS contract after mechanical failures in prototypes were too crucial to overcome. Short sellers Fuzzy Panda and Hindenburg Research both attacked Workhorse, but investors continued to invest as levels of electric vehicle mania surged. Not to say that short-seller reports are always correct, but at times if the research is done well, they can be just as important to investor due diligence as positive news on companies. Workhorse refused to comment on both short-seller reports when they were released.