Workhorse stock plunges to 52-week low at $1.88 amid market challenges

Published 28/03/2025, 14:36
Workhorse stock plunges to 52-week low at $1.88 amid market challenges

In a stark reflection of the tumultuous market conditions, Workhorse Group Inc. (NASDAQ:WKHS) stock has tumbled to a 52-week low, touching down at $1.88, with concerning fundamentals including negative EBITDA of -$85.1 million and rapidly diminishing cash reserves, according to InvestingPro data. The company, known for its electric delivery vans, has faced a series of setbacks that have significantly impacted investor confidence, leading to a precipitous drop in its stock value. Over the past year, Workhorse has seen its share price erode by an alarming -96.5%, with technical indicators suggesting oversold conditions. This latest price level represents not just a low for the year but also a critical juncture for the company as it grapples with internal challenges and external market forces. InvestingPro analysis reveals 20+ additional key insights about WKHS’s financial health and valuation metrics, available in the comprehensive Pro Research Report.

In other recent news, Workhorse Group Inc. has announced several developments that investors may find noteworthy. The company has entered into a securities purchase agreement, securing $35 million in financing through a senior secured convertible note and a warrant to purchase common stock. This is part of a series of financings that could total up to $139 million. Additionally, Workhorse has received consent from an institutional investor to release $3 million from a lockbox account, which is intended to support the company’s operational and financial objectives.

Workhorse has also secured another $3.5 million in financing through a senior secured convertible note, further strengthening its financial position. In a strategic move to comply with Nasdaq’s listing requirements, Workhorse announced a reverse stock split at a ratio of 1-for-12.5, effective March 17, 2025. This action aims to meet the minimum bid price requirement of $1.00 per share.

Furthermore, Workhorse has received approval to import and sell its all-electric step vans, the W56 and W750 models, in Canada. This entry into the Canadian market aligns with the country’s goals for sustainable transportation and offers new growth opportunities for Workhorse. These recent developments reflect Workhorse’s ongoing efforts to enhance its financial stability and expand its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.