WKHS Stock News: Workhorse Group Inc seems like a win-win on any election result
- Investors in NASDAQ: WKHS are bracing for a third day of significant losses.
- Workhorse Group Inc still has a promising future if Biden wins and injects money into the post office.
- President Trump's picture with a Lordstown Motors truck is also a positive.
A third day of losses is due for NASDAQ: WKHS – Thursday's pre-market trading is showing another slide of 4% to $24.21. That would follow a significant sell-off on Wednesday, which saw a plunge of 6.72% or $1.82 to a closing price of $25.28.
The electric vehicle maker is now valued at around $2.66 billion, far above the lows, but below the peak.
Technical traders may find solace in the fact that WKHS is still trading above the $22.13 level, which was a low point in late September. Another cushion awaits at $17.67, last month's low. Resistance is at the weekly closing peak of $28.13 recorded on Monday.
Are shares set to extend their slide or is it a buying opportunity? The firm is in the right place and at the right time – making EVs which are in growing demand and also owning a stake in Lordstown Motors, which makes delivery vans – much needed amid the coronavirus pandemic.
President Donald Trump sent stocks surging early in the week after he was pictured viewing such a Lordstown truck. And now, politics may prove positive for the company. Here is why.
WKHS stock news
President Trump is keen to shore up his critical supporters – working-class Whites in rust-belt states. Making America Great Again means supporting firms such as Workhorse. His photo op is telling.
What about former Vice President Joe Biden? The Scranton, Pennsylvania-based politician also boasts his working-class and could also champion such companies that mix American manufacturing and renewable energy which his Democratic Party supports.
More importantly, the party wants to pour money in the US Postal Service and previously passed a bill injecting $25 billion into the government service. The USPS is set to renew its fleet of delivery vehicles and may lean toward greener energy. A clean sweep for Democrats could result in funds flowing to the Loveland, Ohio-based company.
All in all, there are reasons to like Workhorse Group Inc.
See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included
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Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
