WKHS stock rose on optimism toward the USPS deal and the EV sector, only to undercut that optimism with a failure to execute. But even leaving aside the fact that shorts have been dead-on correct in their coverage of Workhorse during the last 18 months, this is not a case of manipulation. In this market, that data point alone can raise allegations of manipulation, unfair coverage, and the like. Short sellers continue to take aim at the stock, with 39% of the float sold short according to the most recent data. Seven weeks later came the recall/suspension announcement. Production guidance is being missed yet again Workhorse started out promising 1,800 vehicles, cut that to 1,000 after Q1, then pulled guidance entirely when new CEO Richard Dauch came on board on Aug. The USPS contract, which totaled $6 billion and had the potential to transform the company, is gone.
It's been a difficult year for WKHS stock, which has dropped 71% over that stretch. At this point, there's simply very little here, and very little reason to bet on Workhorse Group to change its ways. Those positives don't look positive enough, however. Cash on the balance sheet and an equity investment can literally buy Workhorse Group some time. A market capitalization that's now dipped under $1 billion offers the potential for real upside if the potential is realized.
WORKHORSE STOCK HOW TO
Demand for electric delivery vans should rise, a potential tailwind if Workhorse can ever figure out how to actually meet that demand. There are perhaps some opportunities with the HorseFly drone platform. Workhorse has brought on a new chief executive officer with a solid track record and industry experience. And, to be fair, there is at least a chance that it will. Obviously, that needs to change at some point. And with the company last week suspending deliveries and recalling 41 already-delivered vehicles, that seems unlikely to change any time soon. It's still delivered less than 400 vehicles cumulatively.
Three and a half years ago, Workhorse promised 2,000 deliveries in calendar year 2018. Because, to be blunt, it's a history of failure. This is a different stock in a very different EV market.īut from a broad perspective, the company's history does matter. What Workhorse was eight months ago is not what Workhorse is now. Broader optimism toward electric vehicles has been stunted somewhat, in part due to standard-issue political gridlock. It's irrelevant that the stock touched $43 in February or $18 in late June neither level makes the current price below $8 "cheap." The seemingly endless bid (it started all the way back in 2017) for a contract with the United States Postal Service is officially dead, now that Workhorse has withdrawn its appeal of the award, which went to Wisconsin-based Oshkosh ( OSK ).
Much of the drama that has surrounded Workhorse stock over the past 18 months simply doesn't matter anymore. The challenge with Workhorse Group ( NASDAQ: WKHS) stock at the moment is that it requires investors to simultaneously ignore its history and pay close attention to it.
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