Shares of Workhorse Group Inc (NASDAQ: WKHS) are trading lower today following their meeting with the US Postal Service on Wednesday. Questions had arisen after The Ohio based Company lost the Next Generation Delivery Vehicle (NGDV) contract to Oshkosh Corp (NYSE: OSK) and Ford Motor Company (NYSE: F). The NGDV contract will grant USD 6 billion to Oshkosh and Ford to manufacture a fleet of between 50,000 to 165,000 new delivery vehicles for USPS in the coming decade, 75% of which are estimated to be electric-powered.
Investors had felt that Workhorse was the ideal candidate for the contract since the Company specializes in manufacturing electric delivery vehicles. Yet despite this, US Postmaster Louis Dejoy has stated that 90% of the new fleet developed by Oshkosh and Ford will be gas-powered, leaving many investors and elected officials frustrated and confused. Since news of the contract broke, shares of Workhorse have plummeted by almost 70% from USD 41.34 to USD 13.50. Due to this, Workhorse has faced intense backlash and threats of legal action for potentially misleading investors.
Workhorse has since committed to challenging the results to the USPS contract. After meeting with USPS representatives on Wednesday, Workhorse CEO Duane Hughes reaffirmed the Company’s commitment to its investors and stated, “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,” Hughes went on to say, “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.”