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Workhorse Falls on Report of Short Sale, 50% Expected Downside

Published 07/10/2020, 02:05 PM
Updated 07/10/2020, 04:10 PM
© Reuters.

By Christiana Sciaudone

Investing.com --  Workhorse Group Inc (NASDAQ:WKHS) dropped Friday after news that Hindenburg Research is short on the stock, and expecting downside of 50%.

Shares fell 7.6% after rallying sixfold since June 1. They closed down 5.5%, to $15.18.

The company has an “astronomical valuation”of about $1.5 billion despite less than $100,000 in revenue last quarter, Seeking Alpha wrote, citing Hindenberg. “We see the chance of winning a material USPS contract as virtually zero. A reality check is on its way."

Workhorse has been trading higher based on a recent financing round, as well as having recently received federal approval for its all-electric vans. After being delayed because of the coronavirus, Workhorse said that it had successfully completed Federal Motor Vehicle Safety Standards (FMVSS) testing for its C650 and C1000 delivery vans.

Nikola Corp (NASDAQ:NKLA), which makes electric trucks, also fell, about 4% to close at $54.24.

 

Latest comments

There is so much manipulation in the market these days. If your day trading you like this headline. Long holders could care less. WKHS is easy retirement money.
how can nikola who has not even sold a truck be worth this much" overhyped lies". BYD is the leader in EV sales period and I'm holding it bought at 9$ currently 19$. Tesla and BYD and maybe NIO are good because they have actual PROFITS.
do u buy byd h or f stock
A reality check is definitely on the way
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