Yet while Workhorse applied for FAA approval of its drones last October, it may not come in time to prevent the shares from capitulating.ĭauch may be able to spearhead a successful turnaround. Its HorseFly drone platform could end up being the potential catalyst that delivers for WKHS stock. The fact that its new CEO hasn’t commented on this issue could tell you all you need to know. Unfortunately, the chances of that happening do not look so good. Many are still holding Workhorse in the hopes that its USPS protest will prevail. And even the ones that are more probable may not happen in time to save the day for WKHS stock. But keep in mind that none of them is guaranteed to happen. Many possible catalysts could cause a short squeeze in WKHS stock. But since the chances of that occurring are questionable, the shares could instead make a big move in the other direction. If any of these positive catalysts materialize, the shares may have room to rally 100%, or even more. Third, any sort of progress towards getting a private-sector electric truck order could cause the name to rally.Īfter former Delphi Technologies CEO Richard Dauch was recently appointed as the automaker’s CEO, the company may now have the experienced leadership it needs to get out of its current rut. Last month, InvestorPlace columnist Joseph Nograles explained that the shares could get a big lift if HorseFly is approved by the Federal Aviation Administration (FAA). Second, its HorseFly drone technology could be more successful than expected. Recently, I broke down several possible scenarios that could enable the stock to double amid a squeeze.įirst, its protest of the USPS’s decision could make headway. But more likely is a partial recovery that enables investors buying WKHS stock at today’s prices to generate a 100%+ gain in a short amount of time. Perhaps they won’t reach the $42.96 per share level that they hit back just before the firm lost the USPS bid. Several catalysts could cause the shares to bounce. Since Workhorse lost the USPS Vehicle contract bid to Oshkosh (NYSE: OSK), why haven’t investors pushed WKHS stock back down yet to its pre-hype prices? The answer is simple: the company is down, but not out.

WKHS Stock May Have a Shot at Bouncing Back Just keep in mind that while a 100%+ gain may be possible, a nearly 80% loss may be in the cards as well. That being said, it’s understandable if you still want to roll the dice on this name. Instead, in the months ahead, the shares could make the long trip back to about $2 per share, which was where they traded prior to getting inflated due to the EV bubble. However, barring a positive development, such as progress with its drones (I’ll write more about that below), it’s hard to see how this name could excite the speculators again. Instead, going long this stock is a bet on the sentiment towards it flipping back to positive. However, as with other “meme stocks,” it’s not the company’s fundamentals that matter. But so far that hasn’t really happened.īased on the company’s fundamentals, there’s little reason to buy WKHS stock, as it trades at a valuation that’s far above its underlying value. The reason is that, with 33.5% of its float being sold short at last check, the chances of Workhorse undergoing an epic short-squeeze looked very high.

Some investors, however, decided to continue to hold the shares.

Workhorse drone