News – USA – WKHS Stock: Why Workhorse Stocks Are Down Nearly 50% Today

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Workhorse (NASDAQ: WKHS) fell nearly 50% on Tuesday thanks to big news after great anticipation, the United States Postal Service awarded its fleet contract Workhorse wasn’t the winner, and the massive decline in WKHS shares reflects this must have You now know:

Today, the USPS finally announced the winner of its electric vehicle contract.As part of this, the contractor will help the Postal Service electrify its fleet and lead it into the new age. As one of the finalists, many investors were confident that Workhorse clearly fits this role instead, Oshkosh Defense closed the deal

According to the press release, the US. Postal Service plans to release a 10-year plan to improve its technology and infrastructure soon. This fleet electrification contract is the first and most closely watched step. Thanks to several delays, the process of identifying a winner has continued, causing too much hype and volatility for the WKHS stock has resulted

The Postal Service announced that Oshkosh Defense will complete a production design for the Next Generation Delivery Vehicle (NGDV) through an investment of $ 482 million Over the course of 10 years, between 50000 and 165000 vehicles assembled They will either be equipped with fuel-efficient combustion engines or battery-electric drives

For context, investors should note that USPS 230Has 000 vehicles in each class This includes 190000 one who routinely deliver mail These NGDVs will help replace and expand the fleet, which includes obsolete and fuel efficient vehicles

Investors shouldn’t be completely amazed at the 50% decline in Workhorse stock. The company’s fate seemed to have been heavily dependent on the outcome of the deal, and it was a focus of WKHS stock analysis and the hype because so many investors are from Convinced of its success, the blow is particularly painful for fans of the EV company today

And to be fair, that contract was a big part of the story for Workhorse. Without it, it will be some time for the company to get excited about another project However, there is reason to hope in early 2021 the WKHS recovered Share for Another Catalyst President Joe Biden said he wants to electrify the entire federal fleet. Investors were quick to see Workhorse as a potential beneficiary, and that could be the case

When deciding what to do next with Workhorse, be sure to do your own research

At the time of this writing, Sarah Smith held positions (either directly or indirectly) in any of the securities referred to in this article

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Oshkosh Corporation, United States Postal Service, Workhorse Group, Oshkosh Defense, LLC, NASDAQ: WKHS, Stock, NYSE: OSK

News – USA – WKHS Stock: Why Stocks of Workhorses have fallen almost 50% today

Source: https://investorplace.com/2021/02/wkhs-stock-why-workhorse-shares-plunged-nearly-50-today/