What happened

On Dec. 4, hybrid electric truckmaker and electric "last-mile" package-delivery-by-drone company Workhorse Group (NASDAQ:WKHS) got a big boost when the company suggested it was getting a cash influx from flight technologies company Moog (NYSE:MOG.A). From Dec. 4 through yesterday's close, the stock gained 23.5%. Today, however, Workhorse stock is down 5.2% as of 10:45 a.m. EST (and it was down closer to 10% earlier in the morning).  

The reason: Now we know precisely how much money Moog is paying Workhorse -- and it isn't a lot.

Quadcopter delivery drone carrying a package

Image source: Getty Images.

So what

In the Dec. 4 announcement, Workhorse advised that it was establishing a 50-50 joint venture with Moog to develop and market its HorseFly "last mile delivery" Aerial System, hoping "to tackle new markets and create outcomes [that] are greater than just the sum of the parts." In a related transaction, WorkHorse said it would sell its SureFly vertical takeoff and landing technology, and tech for the related hybrid electric power system technology, to Moog outright -- for an undisclosed price.

Investors apparently hoped this would be a good price, as reflected in the increase of more than $30 million in Workhorse's market capitalization between the announcement date and yesterday's close of trading. But this morning, Workhorse Group filed an 8-K/A report with the SEC, advising that the actual price on the SureFly sale was just $4 million.  

Now what

Obviously, $4 million is a whole lot less than the $30 million-plus value that investors ascribed to the two deals reported on Dec. 4 -- which explains why investors are selling off Workhorse Group stock today. Of course, there's always the possibility that the closer relationship with Moog, by way of the joint venture, will in and of itself justify the run-up in share price.

But that remains to be proven, and judging by today's price action, investors remain unconvinced.