WKHS Stock News: Workhorse Group Inc. price might be inflated too much with EV industry recent success
|- Sky-high valuation of $1.5 billion has some analysts skeptical.
- Share price slid from $21.18 down to $15.18 this past week.
- Workhorse may fall short in their bid for a contract with USPS.
NASDAQ:WKHS has been the target of some analysts over the past week, with claims that the $1.5 billion market cap is strongly inflated due to the recent surge of the EV industry. While investors are desperately searching for the next Tesla (NASDAQ:TSLA), it should be noted that Workhorse’s customer base is significantly different. Their C-Series Electric Van is targeting the delivery sector, already having sold 1000 of the model to UPS (NYSE:UPS).
Workhorse Group news
While the Electric Van industry is definitely in need of some competition, Workhorse Group Inc. still managed less than $100,000 in revenue last quarter and even still, Workhorse shares were up an astounding 328% since February of this year, even though the heart of the Covid-19 pandemic in America. The share price inflation comes even after Workhorse posted a 119.28% decrease in earnings from the Q4.
Social media group Hindenburg Research also gives the company a ‘virtually zero’ chance at winning the USPS contract to supply electric vans around the country. The group also points to insiders within the company dumping their shares over the last few months, as the share price continued to rise. This is usually something investors should note as it generally follows that insiders sell their shares in the company when they believe the future price of the stock will be lower.
This past week saw a near 30% dip in the share price of Workhorse as analysts in the industry pointed out that not all EV companies are built equally. The future for Workhorse could be even bleaker when rival Nikola Motors (NASDAQ:NKLA) finally launches their electric delivery trucks. The share price may be retreating as some of the momentum from Tesla’s skyrocket has worn off for some of the EV companies in the market. Workhorse will have to put together some profitable quarters if they want to prove they are worthy of that valuation.
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