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Workhorse Group Inc. (NASDAQ:WKHS) stock has plummeted to a 52-week low, touching a price level of just $0.49. This significant drop reflects a challenging period for the electric vehicle company, which has seen its stock price erode by an alarming 90.2% over the past year. According to InvestingPro data, the company’s financial health score is rated as WEAK, with concerning indicators showing rapid cash burn and significant debt burden. Investors have been grappling with a mix of industry-wide issues and company-specific challenges that have weighed heavily on Workhorse’s market valuation, leading to this new low point in the stock’s performance. The steep year-over-year decline underscores the hurdles the company faces as it strives to stabilize and eventually recover in a competitive and rapidly evolving sector. While technical indicators from InvestingPro suggest the stock is in oversold territory, subscribers can access 20+ additional ProTips and comprehensive analysis to make more informed investment decisions.
In other recent news, Workhorse Group Inc. has secured $3.5 million in additional financing through a securities purchase agreement, issuing a senior secured convertible note to an institutional investor. The company has also appointed Berkowitz Pollack Brant Advisors + CPAs, LLP as its new auditor for the fiscal year ending December 31, 2024, replacing Grant Thornton LLP. Analyst firm TD Cowen maintained a Hold rating on Workhorse’s stock while raising the price target to $1.25 from $0.25.
Workhorse Group continues to face financial challenges, reporting sales of $2.5 million and a cash reserve of $3.2 million. The company has been warned by the Nasdaq Stock Market about potential delisting due to its stock trading below the $1.00 threshold for 30 consecutive days. Despite these challenges, the company achieved important certifications for its 208-inch W56 step-van and reported the completion and sale of 15 W56 step vans.
These recent developments highlight Workhorse Group’s ongoing strategy to strengthen its balance sheet and fund its operations amid significant financial challenges. The company’s efforts to secure additional financing and manage its financial position are crucial in its navigation of the competitive electric vehicle market.
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