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In a turbulent market environment, Workhorse Group Inc. (NASDAQ:WKHS) stock has plummeted to a 52-week low, touching down at a mere $0.4, with a market capitalization now at just $16.5 million. According to InvestingPro analysis, the stock’s RSI indicates oversold territory. The company, known for its electric delivery vehicles, has faced significant headwinds over the past year, reflected in a staggering 1-year change with a decline of -93.55%. This sharp decrease underscores the challenges Workhorse has encountered, from production hurdles to competitive pressures within the electric vehicle industry. With annual revenue of just $9.1 million and an overall financial health score rated as ’WEAK’ by InvestingPro, the company faces substantial operational challenges, including significant debt burden and rapid cash burn. Investors are closely monitoring the company’s strategy and potential recovery plans as it navigates through these testing times. For deeper insights into Workhorse’s financial health and future prospects, InvestingPro subscribers can access 20 additional key insights and a comprehensive Pro Research Report, transforming complex data into actionable intelligence.
In other recent news, Workhorse Group Inc. has received approval to import and sell its all-electric step vans, the W56 and W750 models, in Canada. This move marks a significant expansion for the company as it aims to meet the demand for sustainable transportation solutions in the Canadian market. Additionally, Workhorse Group has secured $35 million in financing through a securities purchase agreement with an institutional investor. The transaction involves a senior secured convertible note and a warrant to purchase common stock, forming part of a broader financing plan that could total up to $139 million.
Furthermore, Workhorse Group has issued an additional $3.5 million in convertible notes to strengthen its capital structure. This issuance is part of a series of financings aimed at bolstering the company’s financial position. In other developments, the company has appointed Berkowitz Pollack Brant Advisors + CPAs, LLP as its new independent registered public accounting firm for the fiscal year 2024. The change in auditors is part of routine corporate governance and does not indicate any issues with past financial reporting.
Workhorse Group’s recent financial maneuvers are designed to provide the capital necessary for its operations and strategic initiatives as it continues to navigate the competitive electric vehicle market. The company is also evaluating the need for an additional reserve against its prepaid purchases asset, which may result in a reserve of between $1.5 million and $1.8 million. These developments reflect Workhorse Group’s ongoing efforts to expand its market presence and manage its financial health.
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