By May, Cathie Wood had liquidated the vast majority of her position. After hitting a high of over $40, shares collapsed to below $8. Unfortunately, Workhorse’s fortunes reversed quickly in February of this year, when USPS announced it had awarded the entirety of the 10-year NGDV contract to Oshkosh Defense ( NYSE: OSK ). Anticipation surrounding this Next-Generation Delivery Vehicles (NGDV) contract fueled an almost 1,000% rally in the stock last year. Postal Service’s aging fleet of delivery trucks. Back in August 2020, the company garnered investor attention for its appointment as o ne of three finalists for a $6 billion-plus contract to replace the U.S. Second, WKHS stock has an exceptionally high short interest, at 38% of the float.īut Workhorse wasn’t always just a short squeeze play. First, WKHS’ float of 114 million is much lower than other similar high-short interest stocks. And, when it comes to being a prime squeeze candidate, WKHS stock has two key characteristics going for it. Redditor squeeze favorite AMC Entertainment (NYSE: AMC) has rocketed 121% in the past month. To some extent, the recent movement in WKHS stock is part of the broader rally in heavily shorted meme stocks. Not surprisingly, Workhorse, which builds electrically powered delivery and utility vehicles targeted at last-mile delivery, has been a perennial retail investor favorite. WKHS Stock: Rise and Fallįollowing Tesla’s (NASDAQ: TSLA ) meteoric rise last year (+510%), investors looking for the “next Tesla” have bid up smaller electric vehicle stocks, most of which have become public via SPACs (special purpose acquisition companies). But WKHS stock is absolutely still a buy. Unfortunately, the odds of instant gratification are slim. You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself.For retail investor bulls “HODLing” on Reddit, there’s buzz around a new patent filing, hope of a short squeeze and a potential reversal of the contract award.

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This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. For instance, we've identified 4 warning signs for Workhorse Group (1 shouldn't be ignored) you should be aware of. Risk Analysisĭon't forget that there may still be risks. The company's shares are down 15% from a week ago. Performance of the American Auto industry. on average during the next 3 years, compared to a 18% growth forecast for the Auto industry in the US. Looking ahead, revenue is forecast to grow 76% p.a. Earnings per share (EPS) exceeded analyst estimates by 16%. Workhorse Group EPS Beats Expectations, Revenues Fall Short

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