Workhorse has surged as much as 521% month-to-date, as investor hype around electric vehicle start-ups like Nikola Motor continues to build.
Workhorse is a small-cap electric vehicle manufacturer that owns a 10% stake in its spinoff Lordstown Motors, which is developing an electric pickup truck poised to compete with Tesla’s Cybertruck and Nikola Motor’s Badger, among others.
Workhorse is focused on developing electric delivery vans that would be utilized by shipping companies like UPS and FedEx.
Workhorse surged as much as 56% on Monday after the company announced it would be added to the Russell 3000 index.
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Add Workhorse to the list of start-up electric vehicle companies that is seeing its stock bid up astronomically by retail investors.
So far in June, shares of Workhorse are up as much as 521% and Robinhood accounts that own the stock surged nearly 300%, according to data from Robintrack.net. Workhorse began June trading at $2.48, and hit as high as $15.41 Monday.
Workhorse develops electric delivery vans that are targeting delivery companies like UPS, FedEx, and DHL. The company also operates an aviation unit that makes delivery drones. Previously, the company developed an electric pickup truck but abandoned that project after it proved too costly for the company to develop.
In 2019, Workhorse licensed its electric pickup truck technology to its former CEO, Steve Burns. Burns formed Lordstown Motors and acquired an auto manufacturing facility from General Motors in Lordstown, Ohio.
Workhorse retains a 10% equity stake in Lordstown Motors and is set to receive a royalty fee for every Lordstown Endurance pickup truck that is sold.
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Source:: Business Insider