On Tuesday, it was announced that the U.S Postal Service (USPS) will be awarding the multi-billion 10-year plan to modernize its fleet to Oshkosh Defense (NYSE: OSK).
Workhorse (NASDAQ: WKHS), an EV start-up specializing in last-mile delivery vans, was one of the last few contenders competing for the contract. Investors had been buying into the stock hoping that Workhorse would be awarded the contract, causing its market cap to skyrocket.
The company has partnerships with UPS and FedEx, but they have resulted in negligible revenues for a company which was valued at $4.5 billion. Securing the contract or part of it, would have boosted its revenues significantly.
After the announcement, shares of Workhorse sank and were halted multiple times, extending its losses to the next trading session.