Workhorse Stock Analysis! What WKHS management Does not want you to know!

Today we are talking about Workhorse stock news if Workhorse Group is truly a good investment, what Workhorse Group’s management does not want you to know, and why WKHS stock along with other electric vehicle stocks are rising so rapidly. And with that being said let’s get into today’s workhorse stock articles. Workhorse Group has already been on the right track for years knowing full well that the world would turn to electric vehicles for better efficiency, cost, and sustainability. But what makes Workhorse very special is that Workhorse already has implemented their patented technology into their vehicles, unlike Nikola or Fisker who brag about their technology but barely have working prototypes or bragging about their order numbers when they have not delivered a single-vehicle yet. Workhorse is one of the few Electric Vehicle companies that keep it real, unlike Nikola who could be smoke and mirrors, or Fisker with their vegan vehicle seats to please an overall very small audience with that minor change. Now Workhorse Stock is still rough around the edges with a loss of 78 cents per share which was way below what analysts forecasted and they are set to continue their losses for the next two quarters yet. The majority of analysts still say to buy or hold WKHS stock. Now, this could be because of the good news of the optimistic production target of 1,800 workhorse vans to be made next year or the USPS contract. Now I am still bullish on Workhorse’s Revenue increase which went from $4,000 to over $500,000 year over year. Also, many of Workhorse’s workers are quarantined right and they will slowly start to go back to work thus allowing workhorse to have more manpower. Here is a warning if you are using Workhorse to make a quick buck and you are not an experienced trader. Now the first segment was rather bullish now I have to give the bad news. Workhorse lost $84 million dollars which the article says is equivalent to making the 1,800 vehicles Workhorse owes to customers and driving them off of a cliff. The reason I bring this up is that in 2019 Steve Burns who is the current CEO of Lordstown Motors left Workhorse Group to start another company and Workhorse came under new management who wastes money. They even decided to use a very bad way to finance their company, and that is with convertible notes. Workhorse has had a difficult time getting orders when their rival Rivian has an order from Amazon for 100,000 vehicles. Also, workhorse has burned through $158 million in cash when in that same period they only had sales of around $18 million. I am conveying the point that Workhorse’s management is not fiscally responsible. Workhorse got $70 million by convertible notes, the company then lost $84 million and the stocks went up. Now do not get me wrong, it is good that workhorse got more cash but they did it in a way that would hurt them and their stakeholders in the future. Because if it is well known that convertible notes can be bad debt why did Workhorse management finance $200 million more dollars in convertible notes. Workhorse executives have already earned 2.7 million in just stock options, and because executives get paid in Workhorse stock, they did not want to use the stock price. Now, this poor decision by Workhorse management will come back to hurt us in 2024 when they literally just could have used the rally for the USPS contract to pay for everything, unless they know they are not getting the United States Postal Service contract. On the bright side is that Workhorse now has the money and if it’s used wisely in production and research Workhorse can do very well. It took Rivian’s Founder who is an MIT engineer and his team to make a good truck in a decade. And because Workhorse already has an amazing foundation, more resources, and now much more money. Workhorse could top Rivian easily. Also, workhorse stock, Lordstown Motors, and other electric vehicle stocks should continue to rally.

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Sources: https://investorplace.com/2020/11/ev-maker-workhorse-ready-to-live-up-to-its-name/

https://investorplace.com/2020/11/workhorse-management-fumbled-losing-84-million-in-90-days/

https://www.fool.com/investing/2020/11/23/why-lordstown-motors-switchback-energy-and-workhor/