Oshkosh Truck Corporation (NYSE:OSK), (WKHS) – Oshkosh Nabs USPS Next Generation Delivery Vehicle Contract; Workhorse Stock Plummets
Shares in four companies respond to news that the United States Postal Service on Tuesday awarded its much-anticipated next-generation delivery vehicle deal.
The potential winners: The USPS announced a multi-billion dollar deal to modernize its delivery fleet Oshkosh Corporation (NYSE: OSK).
Oshkosh will “manufacture a new generation of US-built mail delivery vehicles that will drive the most dramatic modernization of the USPS fleet in three decades,” the press release said Tuesday.
With the first order, Oshkosh will receive $ 482 million to complete the production design of the vehicle and begin assembly of the next generation delivery vehicle. The contract stipulates that 50,000 to 165,000 new USPS vehicles will be built over the next 10 years.
The new vehicles will lower fleet costs and lower greenhouse gas emissions. The new USPS vehicles will also have a 360-degree camera with air conditioning and heating. The Oshkosh winning vehicle also offers more space for cargo to better accommodate higher parcel volumes.
The award is a perpetual supply contract of perpetual quantity, meaning the USPS is able to order more vehicles over a 10 year period.
The new USPS vehicles are expected to be used for mail carriers from 2023.
Oshkosh completed a joint development with Microvast earlier this month on “Future Battery Collaboration and Innovation”.
The battery manufacturer Microvast is going public through a SPAC merger Tuscan Holdings Corp. (NASDAQ: THCB). Oshkosh invested in the PIPE as part of the SPAC deal. Microvast could be the supplier of batteries for the new USPS vehicles.
Related Link: Workhorse Stocks Fall On Delayed USPS Mail Truck Decision
The potential losers: Two stocks that are hurt by the USPS news are Workhorse group (NYSE: WKHS) and Lordstown Motors Corp (NASDAQ: RIDE).
The 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, has been seen as a potential manufacturing partner for Workhorse.
Price action: Oshkosh’s shares 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.
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