One of its key investors, Lordstown Motors (RIDE) sold seventy-two percent of its 16.5 million share stake, bringing in nearly eighty million USD cash, and still holds another thirty-four million USD of stock.
#Will workhorse stock go up plus
As soon as Dauch took over as CEO on August 1, 2021, the announcement of the fort-one EV unit recalls, plus the suspension of all future deliveries came to pass.Ģ So Is Workhouse Stock Worth It? Down But Not OutĪlthough Workhorse Group and its stock don’t seem promising at the moment, they may still be worth the high-risk long-term investment as its stock value is at a fifteen-month low. Losing the USPS contract was a six billion dollar loss that Working Horse could not afford to lose in addition to the less-than-impressive reputation they’ve earned as a company failing to deliver on the promised product. The future of Workhorse Group will depend on the direction the CEO takes and how willing the company is to change how it’s been doing business for the past eighteen months.
While the contract with USPS may be ended, for now, there are still a number of companies that have a solid interest in hosting a fleet of EV units as the price of gas and oil continue to spike at controversial levels. However, in certain governments with political leaders bent on steering their nations away from the use of combustion-reliant vehicles in favor of EVs, the expectation for EV delivery vans are expected to rise. The world has changed dramatically in just a few short weeks and right on the heels of the COVID-19 pandemic that still continues to pave waves of uncertainty as once again politics are coming into play in that regard. At the moment, the HorseFly drone platform could see some new demands due to rising tensions among nations while the Russian-Ukraine conflict continues. At the moment, all deliveries have been suspended and there have been over forty previously delivered EV units that were recalled due to performance issues. There were supposed to be two thousand EV units delivered in the year 2018 but only delivered four hundred. Workhorse Group’s current situation was inevitable after over three years’ worth of promises that were not kept. The Workhorse Group seen today is not the same that showed so much promise almost a year ago. Adding to the drama is the deadlock existing between political parties and the current global situation over energy sources that has put the progress of the EV market into a tailspin. The success of this company rests on the shoulders of investors and how much of its history are they willing to ignore, especially now the business relations between Workhorse Group and USPS coming to an end. At the moment, Workhorse Group is in the “do or die” stage with a new Chief Executive Officer (CEO), Richard Dauch, and what direction are they going to go with the drone business. However, according to Seeking Alpha, the history of failure on Workhorse’s part to deliver on its core product due to the Electric Vehicle (EV) bubble burst and the United States Postal Service (USPS) contract bid now over, unless Workhorse finds a solid direction to go on to survive and thrive as a company it could be as little as five years before it disappears into obscurity as the weaker companies establishing themselves in the EV industry is either bought out or forced into receivership as the stronger companies move forward.
So far, the daily average volatility level of this stock has been slightly over seven percent. At the moment, the volatility of this stock has painted the picture of Workhorse Group as a very high-risk stock investment due to the pivot sell point which began on March 24, 2022. On March 25, 2022, the stock fell from $4.49 USD to $4.33 USD and while that’s not an impressive number to boast with the price spike within the last two-week period has been up by nearly twenty-seven percent. However, as a long-term investment, the buy signal still exists as its future forecast shows enough promise to maintain support from current investors who are in this endeavor for the long haul. From a short-term investment point of view, the Workhorse Group’s stock performance comes across as an unstable ride with too much uncertainty.
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