Oshkosh Nabs USPS Next Generation Delivery Vehicle Contract; Workhorse Stock Plummets

Shares of four companies are reacting to the news that the United States Postal Service has awarded its highly anticipated next generation delivery vehicle contract on Tuesday.

The Potential Winners: The USPS announced a multi-billion dollar deal to modernize its delivery fleet with Oshkosh Corporation OSK.

Oshkosh will “manufacture a new generation of U.S. built postal delivery vehicles that will drive the most dramatic modernization of the USPS fleet in three decades,” according to Tuesday’s press release.

The initial contract will see Oshkosh get $482 million to finalize the production design of the vehicle and begin assembly of the next generation delivery vehicle. The contract calls for 50,000 to 165,000 new USPS vehicles to be built over the next 10 years.

The new vehicles will reduce fleet costs and lower greenhouse gas emissions. The new USPS vehicles will also feature air conditioning and heat, 360 degree cameras. Increased space for cargo to better accommodate higher package volumes is also a feature of the Oshkosh winning vehicle.

The award is an indefinite delivery, indefinite quantity contract, which means the USPS has the ability to order more vehicles over the 10-year time period.

The new USPS vehicles are expected to be used for mail carriers beginning in 2023.

Oshkosh entered into a joint development with Microvast earlier this month in a deal that covers “future battery collaboration and innovation.”

Battery manufacturer Microvast is going public via a SPAC merger with Tuscan Holdings Corp THCB. Oshkosh invested in the PIPE on the SPAC deal. Microvast could be the supplier of batteries for the new USPS vehicles.

Related Link: Workhorse Shares Fall On Delayed USPS Mail Truck Decision

The Potential Losers: Two stocks getting hurt by the USPS news are Workhorse Group WKHS and Lordstown Motors Corp RIDE.

Workhorse Group was one of three finalists for the USPS contract.

Workhorse owns 10% of Lordstown Motors. The company, which is working on its own electric pickup truck, was seen as a possible manufacturing partner with Workhorse.

Price Action: Shares of Oshkosh are up 11% to $114.55, while Tuscan Holdings Corp shares are up 24% to $22.26.

Workhorse shares are down 51% to $15.30 and Lordstown Motors shares are down 15% to $19.33.