WKHS stock continues to move higher for the second straight session after gaining a whopping 220% in yesterday’s session following Donald Trump’s sudden tweet about automaker Workhorse Group Inc (NASDAQ:WKHS).
It is a well-known fact that United States President Donald Trump often puts out extremely market-sensitive information on his Twitter feed, and that is exactly what he did yesterday. The President tweeted about being informed that General Motors (NYSE:GM) is going to sell a facility to Workhorse Group. Workhorse will use the facility to build electric vehicles.
Following the tweet, Workhorse stock went on a tear and went up by as much as 214% as investors scrambled to get in on the action. Workhorse, which is based out of Ohio, is in the business of building electric vehicles and has a total market value of $173 million.
WKHS Stock: The Sudden Rise
In his tweet, Donald Trump stated that the Chief Executive Officer of General Motors had informed him about the sale of the facility in Lordstown. Not long after the tweet, WKHS stock started climbing. Due to the surge in interest in Workhorse, the company’s website crashed as the number of visitors to it rose abruptly.
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At the opening bell in Wednesday’s session, Workhorse shares were priced at 82 cents but closed at $2.65, and needless to say, WKHS stock experienced an immense spike in volume throughout the day.
However, a clarification soon came from General Motors. The car manufacturing giant stated that it was actually in talks with Workhorse to sell their plant in Warren, Ohio and not in Lordstown.
Analysts React
Needless to say, when a move of this nature takes place, analysts are almost always asked about their opinions on the stock in question. According to most analysts, WKHS stock’s surge was solely due to the tweet sent out by the US President and not by anything fundamentally different that the company might be doing in the near term.
However, the analysts did state that Workhorse is currently collaborating with the US Postal Service over an advanced vehicle that could make deliveries far more efficient. Many analysts believe that Workhorse is going to be chosen as the partner and the vehicles could go into production at some point this year. The company has not confirmed this belief but did state that it is in consideration for the US Postal Service contract.
WKHS stock is up another 18%, selling for $3.01 in today’s trading session and made a new 52-week high of $3.27 earlier in the session.
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