Skip to main content

Market Overview

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

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 (NYSE: 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 (NASDAQ: 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 (NYSE: WKHS) and Lordstown Motors Corp (NASDAQ: 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.


Related Articles (OSK + WKHS)

View Comments and Join the Discussion!

Posted-In: Microvast SPACNews Contracts Small Cap Top Stories Movers Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at