Shares of American electric vehicle maker Workhorse Group are continuing to fall premarket after closing Tuesday’s session 47% lower following news that the company missed out on a key contract from the US Postal Service.
The USPS awarded the first part of the multi-billion dollar contract to Wisconsin based Oshkosh Defense, with the initial investment amounting to $482 million.
The decision by the USPS has taken several years after numerous delays, and despite the company already having partnerships with companies such as UPS and FedEx Express, analysts viewed the USPS contract as a catalyst in Workhorse’s share price gain.
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Following the news, equity research firm Oppenheimer downgraded the stock to perform from outperform on Wednesday.
The company’s shares are down 4.4% premarket at $15.74, although they are still up over 360% in the past year.