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Will Workhorse Stock’s Winning Streak Continue?

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Lately, Workhorse (NASDAQ:WKHS) stock has been on an unprecedented winning streak. The stock rose for 11 consecutive days as of July 2.

Workhorse stock’s strong performance

Workhorse focuses on last-mile delivery EVs (electric vehicles) and targets companies like UPS, FedEx, and DHL. The stock has gained a whopping 588% this year. Apart from the general rising interest in the EV sector, many positive catalysts have materialized for the stock.

Approval from federal safety standards

On June 23, Workhorse got approval from federal safety standards for its C-Series delivery vans. With the approval, Workhorse is the only US all-electric OEM in the last-mile delivery vehicles niche to complete this testing.

“First mover” advantage

BTIG analyst Gregory Lewis thinks that the approval has given Workhorse a “first mover” advantage. He thinks that the company has got at least a 1 or 2-year head start on other EV last-mile delivery competitors. Lewis also said that the approval will allow Workhorse to secure a revolving credit facility.

Workhorse stock included in the Russell 300 Index

On June 29, Workhorse stock was included in the Russell 3000 Index. The company’s CEO, Duane Hughes, said, “Our inclusion into the Russell 3000 Index represents another milestone for Workhorse as a public company in a year where we expect to make additional landmark achievements in the electric vehicle industry.”

Lordstown’s electric pickup truck

On June 25, Lordstown Motors unveiled its first electric pickup truck, Endurance, amid much fanfare. Workhorse has a 10% stake in Lordstown Motors. The company licensed its electric pickup truck technology to its previous CEO, Steve Burns. He formed Lordstown Motors after he left Workhorse. Notably, Workhorse will receive a royalty fee from Lordstown on every Endurance truck it sells. The deal added optionality to Workhorse. Also, the Endurance reveal triggered a rally in the stock.

On June 30, Workhorse announced that it has secured $70 million in new financing.

Will Workhorse stock’s winning streak continue?

After such a massive surge, will the stock sustain the winning streak? Investors have been flocking to EV stocks. However, Workhorse’s valuation looks stretched. The company hasn’t delivered a single vehicle yet.


The stock’s next move depends on the fate of the US Postal Services contract. The USPS vehicle replacement contract decision is due later this year. If the company gets the contract, the upside could be huge. However, if Workhorse doesn’t get the contract, there could be a significant downside as well.

After getting approval for the vehicles, Workhorse needs to start executing vehicle production. The production will provide credibility and a basis to value the company more accurately. For now, the volatile trading in EV names will likely continue.

Read Should You Bet on Workhorse Stock in the Hot EV Market? to learn more about the company’s fundamentals.

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