Shares of Workhorse Group (NASDAQ: WKHS) are down in after-hours trading Tuesday on news of a delay for the long-awaited U.S. Postal Service contract.
What Happened: The USPS is delaying its contract decision on the USPS replacement vehicles, according to Trucks.com.
The USPS told Trucks it expects to make a decision in the second fiscal quarter of 2021. This decision has been delayed multiple times already and now puts pressure on Workhorse, one of three finalists for the contact.
“Amid continuing Covid-19 concerns, and in order to provide for capital investment activities and required approvals, the program schedule has been revised and a decision is now planned for quarter 2 of fiscal year 2021,” the USPS said in a statement.
Why It’s Important: The USPS is set to award a $6 billion contract for 180,000 delivery vehicles. Workhorse Group is one of the finalists along with Turkey-based Krsan and Oshkosh Corporation (NYSE: OSK).
Shares of Workhorse are up over 700% in 2020 and investors could sell the delay news.
WKHS Price Action: Shares of Workhorse fell 14% to $21.75 in after-hours trading.
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