Workhorse Stock Rallies As EV Play Tops WallStreetBets Mentions

Shares of Workhorse Group Inc. WKHS, which manufactures electrically driven delivery and utility vehicles, are advancing sharply Monday.

What Happened: Workhorse shares peaked at $42.96 in early February only to reverse course and move down. The stock hit a low of $7.07 on May 13, translating to a peak-trough decline of roughly 84%.

The EV maker is now on its way back up. Monday's gain is apparently reflecting strong retail buying interest.

At last check, Workhorse was topping the list of mentions on WallStreetBets forum, based on data supplied by Swaggy Stocks. The EV stock received 209 mentions, with 189 positive and 20 negative mentions.

Closely following Workhorse was ContextLogic Inc. WISH, with 208 mentions. Clover Health Investments, Corp. CLOV was placed third in terms of retail interest. The health insurer received 194 mentions.

Related Link: Workhorse Has The Edge Among EV Delivery Trucks, Oppenheimer Says

Why It's Important: Workhorse's recent upward move after its mid-May trough is seen as masterminded by the retail buying push. In early June, Cowen downgraded Workhorse shares and said the retail stock rally is not justified by fundamentals.

The company reported in May with below-par results for its first quarter. Its production schedules have gone haywire due to the COVID-19 pandemic. Additionally, the company is locked in a legal battle with the U.S. Postal Service over the award of a multibillion-dollar contract to Oshkosh Corporation OSK.

Lordstown Motors Corp. RIDE, in which Workhorse has a 10% stake, is also in knee-deep trouble due to liquidity crunch.

WKHS Price Action: At last check, Workhorse shares were rallying 6.41% to $16.61.

Related Link: Is The Workhorse Group Stock Rally About To End?

Photo: a Workhorse vehicle.