Until a reversal on Friday, the share price of Workhorse Group (NASDAQ: WKHS) had been skyrocketing, adding 59% to its value in the past two months. Nothing .
Short squeeze? Workhorse Group stock again a retail trader plaything
No significant news supports struggling electric van maker’s share price gains 3 minutes read Shares in Workhorse Group fell Friday after a two-month runup led by retail investors who may be pushing the company as a meme stock hoping for a short squeeze. (Photo: Workhorse)
Until a reversal on Friday, the share price of Workhorse Group (NASDAQ: WKHS) had been skyrocketing, adding 59% to its value in the past two months.
Nothing is happening in the business to drive such appreciation. If anything, the clock is ticking before competitors in the electric delivery van space catch and overtake Workhorse, which struggles with myriad production issues.
Production ramp-up pains continue as Workhorse loses $120.5M in Q1
0 352 4 minutes read Workhorse Group lost $120.5 million in the first quarter as it delivered six trucks. (Photo: Workhorse)
Workhorse Group (NASDAQ: WKHS) continued to struggle in ramping production of its composite-body electric delivery vans, delivering just six units in Q1.
But the Cincinnati-based company said it has built 38 of its C-Series vans so far this year, most of those in April. Parts shortages and delivery uncertainty led to a downward revision in trucks Workhorse expects to build this year to 1,000 from 1,800.
“Bottlenecks within the global supply chain and offshore shipping delays of commodity raw materials and components as well as our initial stages of production limited our capacity to produce in the first quarter,” Workhorse CEO Duane Hughes said in a press release.
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Workhorse Group (NASDAQ: WKHS) built just seven trucks in the fourth quarter as its underdeveloped production systems and supply chain issues continued to hold down the electric maker s progress even as orders have grown sevenfold compared with a year ago. We are facing various supply chain challenges, both internal and external, CEO Duane Hughes said on the company s Q4 earnings call Monday. Given our backlog, we cannot sacrifice future build volume for current-year production. Scaling up manufacturing properly has to take precedence.
So, Workhorse will continue to take it slow, striving to build three of its composite-body battery-electric trucks a day in March with a plan to reach 10 trucks a day by the end of June. The full-year goal of producing 1,800 trucks is a stretch, Hughes said.