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Courtesy Workhorse
Workhorse
traded lower Wednesday after the commercial electric vehicle maker withdrew its complaint against the U.S. Postal Service after it awarded
Oshkosh
a 10-year, roughly $6 billion contract for postal vehicles.
“Since I joined the company six weeks ago, we have been conducting a deep and intensive overview of all aspects of our business, including an examination of the history of our USPS bid and subsequent protest filing,” said CEO Rick Dauch, who was hired at the end of July.
“The federal government has announced its intention to replace its fleet with electric vehicles, and we believe that the best way for us to work with any governmental agency is through cooperation, not through litigation. By withdrawing our protest, we can also better focus our time and resources on initiatives that we expect will be more productive for our company,” the CEO added.
Workhorse (ticker: WKHS) and Oshkosh (OSK) were among the bidders to replace the Postal Service’s white, right-hand drive delivery vans.
Oshkosh won the bid in late February, disappointing Workhorse investors who believed Workhorse had an edge by virtue of being the only all-electric offering. A portion of the Oshkosh vehicles will be electric or hybrid.
Workhorse filed its legal challenge in mid-June.
Workhorse shares fell 2.6% on Wednesday to $8.23. The stock has declined more than 58% this year. Oshkosh was rising 1.7%.
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