Workhorse Gr Stock (NASDAQ:WKHS), Trade Ideas

Workhorse Gr

Workhorse Group Inc is a technology company with a vision to pioneer the transition to zero-emission commercial vehicles. Its focus is to provide sustainable and cost-effective solutions to the commercial transportation sector. It designs and manufactures all-electric delivery trucks and drone systems, including the technology that optimizes the way these vehicles operate. It's focused on a core competency of bringing electric delivery vehicle platforms to serve the last-mile delivery market. Its products are marketed under the Workhorse brand.

Tilgurg,,Netherlands,-,September,25,,2016:,Tesla,Motors,Assembly,Plant

Equities

News

FFIE

GOEV

HYZN

KARS

LCID

NKLA

RIVN

TSLA

WKHS

XPEV

The decline in EV adoption has also affected industry leader Tesla, leaving the future uncertain for other startups in the sector.

Tesla&#39;s Horror Week Ends With Another Price Cut, Rivian&#39;s Second Round Of Layoffs, Lucid Touts Longest-Range Domestic EV And More: Biggest EV Stories Of The Week

Elon Musk Tesla

VWAGY

As Tesla&#39;s fundamentals get murkier, the company is now focusing on its FSD, which is expected to fetch a recurring, high-margin revenue stream.

Elon Musk&#39;s India Visit, Tesla&#39;s FSD Subscription Price Slashed By 50%, Nikola Plunges Amid Proxy Filing And More: Biggest EV Stories Of The Week

Toronto,,On,,Canada,-,October,31,,2022:,The,Tesla,,Inc,

BYDDF

BYDDY

CANOO

Tesla, a leading EV player, closed the week down over 6%, hit by weak Q1 deliveries and rumors of shelving low-cost vehicle plans.

Tesla Alienates Bears And Bulls Alike, Nikola On The Mend, Canoo&#39;s Struggles And More: Biggest EV Stories Of The Week

Workhorse Group Inc

<p>Needham  analyst Charles Shi   reiterates KLA (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>) with a Hold.</p>


Reiteration

Analyst Ratings

KLAC

Needham Reiterates Hold on KLA

WIIM

Newell Brands shares are trading higher after the company reported better than expected Q1 earnings and issued guidance.

<p>Scotiabank  analyst Patrick Colville   initiates coverage on Tenable Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TENB#NASDAQ">TENB</a>) with a Sector Perform rating and announces Price Target of $47.</p>


Price Target

Initiation

TENB

Scotiabank Initiates Coverage On Tenable Holdings with Sector Perform Rating, Announces Price Target of $47

<p>Goldman Sachs  analyst Kash Rangan   maintains Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a Buy and raises the price target from $450 to $515.</p>


MSFT

Goldman Sachs Maintains Buy on Microsoft, Raises Price Target to $515

<p>Scotiabank  analyst Patrick Colville   initiates coverage on Rapid7 (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RPD#NASDAQ">RPD</a>) with a Sector Perform rating and announces Price Target of $46.</p>


Scotiabank Initiates Coverage On Rapid7 with Sector Perform Rating, Announces Price Target of $46

AVTR

Avantor shares are trading lower after the company reported worse-than-expected Q1 sales results and reiterated FY24 guidance.

<p>The BMP kit runs on Bio-Techne&#39;s Ella&trade;, a benchtop automated immunoassay platform leveraging Bio-Techne&#39;s R&amp;D Systems branded reagents to deliver accurate, reliable, and highly reproducible data in less than 90 minutes. Ella&#39;s microfluidic-based cartridges with separate channels enable precision multiplexing in a hands-free system, making it ideal for diagnostic clinical use. Novomol-Dx relied on a proprietary algorithm to develop the normative data, disease-associated data, and AI-based predictive algorithms for ocular surface and retinal conditions. The complete solution is branded as BioM-Pathfinder. The novel applications for the BMP kit are in Dry Eye Disease, Diabetic Retinopathy and patient stratification or monitoring associated with ocular surgeries and treatments.&nbsp;</p>


Health Care

Contracts

General

TECH

Bio-Techne And Novomol-Dx Have Announced The Development Of Bio-marker Pathfinder, An Ocular Biomarker Kit, As A Point-Of-Care Application

<p><strong>Southwest Airlines Co</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LUV#NYSE">LUV</a>) may reconsider its traditional open seating policy, opting for assigned seats and premium options to attract younger travelers.</p>
<p>The potential change, marking a departure from its historic model, is under serious consideration. CEO Bob Jordan hinted at the airline&#8217;s evolving approach, emphasizing the importance of understanding and meeting customer expectations, reported&nbsp;<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-04-25/southwest-air-is-considering-ditching-unassigned-seating?srnd=industries-v2&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.</p>
<p>This significant shift could be the most substantial adjustment since the airline&#8217;s inception in 1971.</p>
<p>The airline&#8217;s executives have been evaluating evolving passenger preferences, acknowledging the industry&#8217;s shift towards premium offerings, the report read.</p>
<p>However, they&#8217;ve maintained a cautious&nbsp;approach,&nbsp;awaiting confirmation of sustained trends.&nbsp;An official decision on seating arrangements, along with other strategic initiatives like red-eye flights, is anticipated at an investor day event in September, the report added.</p>
<p>In its earnings report yesterday, the company revealed its decision to close its operations at Bellingham International Airport, Cozumel International Airport,&nbsp;Houston&#8217;s&nbsp;George Bush Intercontinental Airport, and Syracuse Hancock International Airport.&nbsp;</p>
<p><strong><em>Related</em></strong><em>:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38435109/southwest-airlines-record-passenger-numbers-overshadowed-by-q1-earnings-slump-and-boeing-setbacks" rel="noreferrer noopener">Southwest Airlines&#8217; Record Passenger Numbers Overshadowed By Q1 Earnings Slump And Boeing Setbacks</a></em></p>
<p>Chief Commercial Officer Ryan Green highlighted Southwest&#8217;s historical aversion to altering its no-frills approach but acknowledged incremental changes over time.</p>
<p>Despite its initial resistance, the airline has embraced technology enhancements and expanded sales channels beyond its website.</p>
<p>With current flights often operating at&nbsp;full&nbsp;capacity, Southwest recognizes the need to address evolving customer expectations.</p>
<p>The potential shift in seating policy is under scrutiny, with careful consideration of its operational impact and alignment with customer preferences.</p>
<p>&#8220;There&#8217;s no decision,&#8221; Jordan affirmed, emphasizing the importance of data-driven insights to determine the best&nbsp;course of&nbsp;action.</p>
<p>Southwest Airlines stock lost over 11% in the last 12 months.&nbsp;Investors can gain exposure to the stock via&nbsp;<strong>U.S. Global Jets ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JETS#NYSE">JETS</a>) and&nbsp;<strong>IShares U.S. Transportation ETF</strong>&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYT#BATS">IYT</a>).</p>
<p><strong><em>Read Next</em></strong><em>:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38412947/airline-passenger-rights-elevated-biden-administration-enforces-refund-rule" rel="noreferrer noopener">Airline Passenger Rights Elevated: Biden Administration Enforces Refund Rule</a></em></p>
<p><strong>Price Action</strong>: LUV shares closed lower by 6.96% at $27.26 on Thursday.</p>
<p><strong><em>Disclaimer</em></strong><em>: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</em></p>
<p><em>Image by Around the World Photos via Shutterstock</em></p>


Media

iShares Dow Jones Transportation Average Index Fund

JETS

Southwest Airlines May Ditch 'Open Seating' To Make More Money From 'Premium Seating' Options

<p>Scotiabank  analyst Patrick Colville   initiates coverage on Qualys (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QLYS#NASDAQ">QLYS</a>) with a Sector Perform rating and announces Price Target of $172.</p>


QLYS

Scotiabank Initiates Coverage On Qualys with Sector Perform Rating, Announces Price Target of $172

SATS

EchoStar Corporation Says Unit  Hughes Network Systems Opens New Manufacturing Facility And Private 5G Incubation Center In Germantown, Maryland, To Boost Local Talent

<p>Evercore ISI Group  analyst Kirk Materne   maintains Microsoft (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MSFT#NASDAQ">MSFT</a>) with a Outperform and raises the price target from $475 to $485.</p>


Evercore ISI Group Maintains Outperform on Microsoft, Raises Price Target to $485

<p>Needham  analyst Scott Berg   reiterates SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and maintains $205 price target.</p>


SPSC

Needham Reiterates Buy on SPS Commerce, Maintains $205 Price Target

Earnings

Guidance

Newell Brands Reaffirms 2024 Normalized EPS Of $0.52-$0.62 Versus Consensus Of $0.57

Newell Brands Reaffirms 2024 Sales Decline Of 8%-5%, With Core Sales To Fall Between 6% to 3%

Newell Brands Forecasts Q2 Normalized EPS Of $0.18-$0.21 Versus Consensus Of $0.25

Newell Brands Forecasts Q2 Sales Decline Of 9%-7%, With Core Sales To Fall Between 6% to 4%

SLCA

U.S. Silica Stockholders Will Receive $15.50 Per Share In Cash For Each Share They Owned, Representing 18.7% Premium To Closing Share Price As On April 25, 2024

<ul>
<li>First quarter&nbsp;total residential and small and medium business (&quot;SMB&quot;) Internet customers decreased by 72,000. As of&nbsp;March 31, 2024, Charter served a total of 30.5 million residential and SMB Internet customers.</li>
<li>First quarter&nbsp;total residential and SMB mobile lines increased by 486,000. As of&nbsp;March 31, 2024, Charter served a total of 8.3 million mobile lines.</li>
<li>As of&nbsp;March 31, 2024, Charter had a total of 32.0 million residential and SMB customer relationships, excluding mobile-only relationships.</li>
</ul>


CHTR

As of March 31, 2024, Charter Communications Served 30.5M Residential and SMB Internet Customers, 8.3M Mobile Lines

TROW

T. Rowe Price shares are trading higher following better-than-expected Q1 financial results.

<p>Interactive Strength &nbsp;announced that it had converted $3.0 million of the Company's $8.0 million senior loan to equity and extended the maturity of the remaining loan balance to December 2024.</p>


TRNR

Interactive Strength Says It Strengthened Balance Sheet By Partially Converting Senior Loan To Equity And Extending Maturity; Company Reduced Liability Of Senior Loan by Converting $3.0M To Equity

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Shares of <strong>Workhorse</strong> (NASDAQ:<a href="https://investorplace.com/stock-quotes/wkhs-stock-quote/"><strong>WKHS</strong></a>) stock are plunging lower by over 10% after the electric vehicle (EV) and drone manufacturer reported its <a href="https://ir.workhorse.com/news-events/press-releases/detail/251/workhorse-group-reports-fourth-quarter-and-full-year-2023">fourth-quarter earnings</a>, revealing a round of layoffs.</p>



<p>&ldquo;As part of our cost-saving actions, we have made the decision to transition the Aero business to a less capital-intensive Drones-as-a-Service model,&rdquo; said CEO Rick Dauch. &ldquo;We are also reducing headcount significantly across the rest of our organization.&rdquo;</p>



<p>Workhorse disclosed that it was currently in the process of enacting a reduction in force (RIF) that would affect 20% of its total workforce when excluding direct labor roles. The company will be reducing jobs in its Aero division as well.</p>



<p>The company believes that it will not incur significant costs for the RIF. As part of Workhorse&rsquo;s cost-cutting initiative, the company&rsquo;s executive officers have agreed to defer 20% of their cash compensation payment for at least three months.</p>



<h2>Workhorse Layoffs: WKHS Announces 20% Reduction in Force</h2>



<p>During the quarter, Workhorse generated sales net of returns and allowances of $4.4 million compared to $34 million a year ago. Stables by Workhorse, the company&rsquo;s EV charging and maintenance stations, and vehicle deliveries drove the firm&rsquo;s sales. </p>



<p>However, the company remains unprofitable, reporting a widening net loss of $45.3 million compared to $38.7 million year-over-year. This was mainly due to $10.2 million in net interest expenses that were incurred following a fair value adjustment of its convertible notes and warrants.</p>



<p>While sales increased, the cost of sales decreased to $18.1 million from $21.2 million. This was attributed to a reduction in disposal costs as a result of the company putting a halt on its C1000 program. </p>



<p>&ldquo;Over the year, we will maintain our focus on operational excellence and cost reduction as we increase production and expand delivery of our commercial vehicles to meet our financial targets for 2024,&rdquo; said CFO Bob Ginnan.</p>



<h2>Workhorse&rsquo;s Drones-As-A-Service Pivot</h2>



<p>Meanwhile, Workhorse noted that it had suspended drone design and manufacturing in order to concentrate on its Drones-as-a-Service (DaaS) business. The company has received several grants to support this business.</p>



<p>Finally, Workhorse announced that it is in negotiations with a party to receive financing. The negotiations are expected to provide both short-term and long-term funding. The firm expects to have enough runway to fulfill its 2024 goals.</p>



<p><strong><em>On Penny Stocks and Low-Volume Stocks:</em></strong><em>&#8239;With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That&rsquo;s because these &ldquo;penny stocks&rdquo; are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that&#8239;InvestorPlace.com&rsquo;s writers disclose this fact and warn readers of the risks.</em>&nbsp;</p>



<p><strong><em>Read More:</em></strong><em>&#8239;Penny Stocks &mdash; </em><a href="https://investorplace.com/2014/05/fraud-penny-stocks-scams/" target="_blank"><em>How to Profit Without Getting Scammed</em></a><em></em>&nbsp;</p>



<p><em>On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em>Publishing Guidelines</em></a><em>. &nbsp;</em></p>
<div><p>Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace&rsquo;s Today&rsquo;s Market team, which centers on the latest news involving popular stocks.</p></div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT793992">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2024/02/wall-street-legend-issues-urgent-ai-code-red/?cid=MKT781156&amp;eid=MKT793990">&ldquo;America&rsquo;s Top Trader&rdquo; Issues A.I. Code Red: Act Now or Miss Out</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793999">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	<p>The post <a href="https://investorplace.com/2024/03/workhorse-layoffs-2024-what-to-know-about-the-latest-wkhs-job-cuts-wkhs-stock/">Workhorse Layoffs 2024: What to Know About the Latest WKHS Job Cuts</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Workhorse Layoffs 2024: What to Know About the Latest WKHS Job Cuts

Workhorse enters into convertible notes transaction to boost liquidity

The EV Start-Up Graveyard And The Walking Dead

BTIG analyst Gregory Lewis has maintained their neutral stance on WKHS stock, giving a Hold rating on March 13. Gregory Lewis has given his Hold ra...

Workhorse Group: Cautious Hold Amidst Financial Stabilization and Conservative Revenue Outlook

Analysts have been eager to weigh in on the Consumer Cyclical sector with new ratings on Workhorse Group (WKHS – Research Report), Cracker Barrel (...

Analysts Offer Insights on Consumer Cyclical Companies: Workhorse Group (WKHS), Cracker Barrel (CBRL) and Home Depot (HD)

Electric vehicle stocks slide after Tesla deliveries stunner

EV Company News For The Month Of March 2024

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Amidst turbulence in the EV market, identifying <a href="https://investorplace.com/industries/consumer-discretionary/automotive/electric-vehicles/">EV stocks</a> to offload in April is crucial. This past year has certainly posed challenges to this sector. Declining demand and increased incentives for EV buyers have prompted a period of re-consideration for many investors. </p>



<p>In short, many more companies now appear to be on the brink of bankruptcy than we&rsquo;ve had in years past. Some of that concerns the seeming death of zero interest rate policy (at least for now). Indeed, the macro environment plays a big role in shaping how successful investors in EV stocks will be over an extended period.</p>



<p>However, there are other sector-specific concerns that keep many investors up at night as well. EV companies are among the hardest hit by the current backdrop, from shifting demand dynamics to input price volatility, quality control issues and an increase in auto loan rates. That means from <strong>Tesla </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/tsla-stock-quote/"><strong>TSLA</strong></a></span>) on down the list, there are a myriad of names that are swimming in a sea of red right now.</p>



<p>I think three are among the most pernicious to consider right now.</p>



<h2><strong>Fisker (FSR)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/07/fisker-ipo-300x169.jpg" alt="The Fisker (FSR) logo hangs on display at the November 2011 International Auto Show. Fisker stock"><div>Source: Eric Broder Van Dyke / Shutterstock.com</div></div><p>The first EV company on this &ldquo;sell&rdquo; list is <strong>Fisker </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/fsr-stock-quote/"><strong>FSR</strong></a></span>). To put it nicely, Fisker has been going through several issues recently.&nbsp;</p>



<p>Fisker&rsquo;s Ocean SUV model faces several severe<a href="https://www.reuters.com/business/autos-transportation/us-opens-investigation-into-fiskers-ocean-vehicles-2024-04-03/"> safety concerns</a>, immediately making this stock one of the higher-risk options in the sector. Numerous complaints of power loss and braking issues have raised alarms, at least for me. Quality is an important factor many investors are increasingly paying attention to, and on this front, Fisker appears to be missing the boat. </p>



<p>Due to door malfunction complaints, the U.S. auto safety regulator initiated a preliminary probe into Fisker&rsquo;s 2023 Ocean SUVs. The National Highway Traffic Safety Administration (NHTSA) received 14 reports of intermittent latch and handle failures, impeding door opening. Facing financial struggles, Fisker awaits the outcome of the investigation.</p>



<p>That&rsquo;s the tip of the iceberg regarding the company&rsquo;s fundamental issues. Despite slashing the price of the Fisker Ocean, the US automaker struggled to retain customers for its electric SUV. Internal data revealed over <a href="https://www.electrive.com/2024/04/04/fisker-customers-cancel-vehicle-reservations/">40,000 cancellations</a> out of 70,000 reservations, posing serious financial challenges. </p>



<p>Each reservation required a $250 deposit, potentially costing Fisker up to $9 million in refunds. With the company likely to pursue a debt restructuring, bankruptcy could be in the cards in the quarters or years to come. </p>



<h2><strong>Canoo (GOEV)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2021/06/canoo-goev-1600-1-300x169.jpg" alt="Canoo (GOEV) logo displayed on smartphone screen as well as in background on yellow wall"><div>Source: shutterstock.com/rafapress</div></div><p><strong>Canoo </strong>(NASDAQ:<span><a href="https://investorplace.com/stock-quotes/goev-stock-quote/"><strong>GOEV</strong></a></span>) is a company that was supposed to benefit from a flood of adoption in the EV sector. The company&rsquo;s rather unique-looking vehicles were touted as the future of transportation. When their design was first released, Canoo&rsquo;s lifestyle vans were intriguing, but the company simply hasn&rsquo;t seen the kind of growth it was expecting. Not at all.</p>



<p>Canoo&rsquo;s stock price has <a href="https://www.barrons.com/articles/canoo-stock-price-earnings-d77ac0e1">plummeted</a> as the company faced challenges in providing any sort of revenue growth. The company&rsquo;s reported EBITDA loss of $54.6 million and revenue of only $367,000 missed expectations by a wide margin. Wall Street anticipated a more minor loss of $45 million with higher sales of $700,000. And that was a low bar to beat (in my opinion). </p>



<p>With revenue not hitting the mark, there&rsquo;s little to go on as a reason to own this stock at current levels. Yes, the company is producing income, and this is Canoo&rsquo;s second revenue-generating quarter. But that won&rsquo;t be enough to entice long-term investors to this name. Until the company hits some sort of reasonable growth trajectory, count me out on this one. </p>



<h2><strong>Workhorse (WKHS)</strong></h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/wkhs1600-300x169.png" alt="Person holding cellphone with logo of American electric vehicle company Workhorse Group Inc. (WKHS) on screen in front of webpage. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div><p>EV company <strong>Workhorse</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/wkhs-stock-quote/"><strong>WKHS</strong></a></span>) has been experiencing turbulence lately, with WKHS stock declining <a href="https://finance.yahoo.com/news/down-32-9-4-weeks-133506522.html">more than 30% over the past month.</a> However, while the stock&rsquo;s oversold status may provide optimism for some dumpster-diving investors, I think it&rsquo;s a dumpster fire that&rsquo;s best avoided at current levels.</p>



<p>Workhorse has barely avoided bankruptcy thus far, producing only four vans per week. The company relies heavily on government aid to support its balance sheet. And despite these grants and subsidies, the company continues to burn through cash as it remains unprofitable on every vehicle it sells.</p>



<p>Bringing in only $8 million of revenue through the first nine months of 2023, the company&rsquo;s net loss of nearly $80 million has eaten into the company&rsquo;s debt pile. This has led to <a href="https://investorplace.com/2024/03/workhorse-layoffs-2024-what-to-know-about-the-latest-wkhs-job-cuts-wkhs-stock/">layoff announcements</a>, in which the company&rsquo;s CEO Rick Dauch said Workhorse will transition to a less capital-intensive service model. </p>



<p>I question whether this transition will be too little too late for the struggling EV maker. This is a stock I think is too dangerous to own at current levels. Invest at your own risk.</p>



<p><em>On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines</a>.</em></p>
<div><p>Chris MacDonald&rsquo;s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.</p></div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
<p>The post <a href="https://investorplace.com/2024/04/bankruptcy-alert-3-ev-stocks-to-sell-now-before-they-plunge/">Bankruptcy Alert: 3 EV Stocks to Sell Now Before They Plunge</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Bankruptcy Alert: 3 EV Stocks to Sell Now Before They Plunge

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>The EV sector continues to undergo a period of extreme difficulty. EV sales growth is slowing, adoption rates are not as high as they once were, and global demand has weakened severely. All of those factors suggest that investors should purge their portfolios of these&nbsp;<a href="https://investorplace.com/industries/consumer-discretionary/automotive/electric-vehicles/">EV stocks</a> to sell.</p>



<p>It&rsquo;s still too far too early to even begin to suggest that the EV experiment has failed. It almost certainly hasn&rsquo;t. The current state of the industry is well explained by <a href="https://www.hightechstrategies.com/methods/technology-adoption-lifecycle/innovation-adoption-curve/">Roger&rsquo;s Innovation Adoption Curve</a>.&nbsp;</p>



<p>While the broader industry will survive, there are many fundamentally weak EV stocks that will not. We will be discussing those weaker performers here. Many of these shares are no-brainer sells. Others are not so obvious. </p>



<p>Let&rsquo;s take an in-depth look at each of those seven EV stocks to sell.</p>



<h2>Canoo (GOEV)</h2>



<div><img width="300" height="225" src="https://investorplace.com/wp-content/uploads/2022/07/canoo-stock-goev-300x225.png" alt="Person holding mobile phone with website of US electric vehicle manufacturer Canoo Inc. (GOEV) on screen in front of logo. Focus on center of phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div><p>It&rsquo;s very easy to take&nbsp; a look at <strong>Canoo</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/goev-stock-quote/"><strong>GOEV</strong></a></span>) stock and find a litany of reasons suggesting that it will fail. Let&rsquo;s start with immediate recent news and then move on to longer term indications.</p>



<p>Shares recently <a href="https://www.barrons.com/articles/canoo-stock-price-earnings-d77ac0e1">dropped by 26% after the company released earnings</a> and very weak sales. The company reported a pre-ebitda loss of $54.6 million on $367,000 in sales. Wall Street had been anticipating 700,000 in sales and investors punished GOEV shares as a result.&nbsp;</p>



<p>Those results are simply a recent indication of a more permanent problem. Canoo is simply a poorly run company overall. Those weaknesses are evidenced by <a href="https://www.gurufocus.com/stock/GOEV/summary?search=GOEV">metrics that are almost all very poor relative</a> to its competitors. The company is in clear distress and <a href="https://www.gurufocus.com/term/zscore/GOEV">faces very real risk of bankruptcy</a> in the near term.</p>



<p>Any potential rebound will take years to materialize if the company can somehow unburden itself of continued losses. It&rsquo;s a much better idea to simply avoid Canoo as it flirts with bankruptcy.</p>



<h2>Mullen Automotive (MULN)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/08/muln1600-1-300x169.png" alt="Mullen Automotive (MULN) brand logo. American automotive and electric vehicle manufacturer"><div>Source: Robert Way / Shutterstock.com</div></div><p><strong>Mullen Automotive</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/muln-stock-quote/"><strong>MULN</strong></a></span>) continues to attempt to carve out a successful nicheIn the EV van segment. That differentiation is theoretically the soul saving grace for the stock. Realistically, it isn&rsquo;t going to matter.</p>



<p>The only important narrative that potential investors should understand is that the company is bound for further dilution. It has remained consistently unable to maintain listing requirements on the Nasdaq. Then it enacts reverse stock splits intended to artificially inflate prices. Instead, those efforts result in dilution. Investors &ndash; at least the wise ones &ndash; realize what&rsquo;s going on and the stock again moves lower.</p>



<p>That&rsquo;s exactly what investors should expect from here on out. The company recently announced <a href="https://finance.yahoo.com/news/mullen-streamlines-business-operations-focus-123000650.html">streamlining efforts intended to reduce costs</a>. Investors would be foolish to believe that mon Automotive suddenly has the capacity to operate well. Recent cost savings announcements are a little more than a marketing ploy. Fool me once, shame on you. Fool me twice, shame on me. It&rsquo;s too little too late.&nbsp;&nbsp;</p>



<p>This make it one of those EV stocks to sell.</p>



<h2>Fisker (FSR)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/04/fsrn1600-300x169.png" alt="Fisker Automotive (FSRN) is an American Luxury vehicle company. Fisker stock"><div>Source: photosince / Shutterstock.com</div></div><p><strong>Fisker</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/fsr-stock-quote/"><strong>FSR</strong></a></span>) is a once promising EV stock quickly headed for bankruptcy. I continue to be amazed at the downfall of Fisker. I was among investors who thought that its outsourcing strategy would greatly benefit the company in the long term.</p>



<p>However, Fisker&rsquo;s choice to outsource the production of its Ocean SUV to <strong>Magna International </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/mga-stock-quote/"><strong>MGA</strong></a></span>) has not resulted in quality vehicles.Those vehicles are facing no less than three separate safety probes from the National Highway Traffic Safety Administration.&nbsp;</p>



<p>Reservation cancellations have topped 40,000 overall. The once promising company is now very close to bankruptcy. Shares are currently in the process of being delisted from the New York Stock exchange. Following a full <a href="https://investorplace.com/2024/04/the-nyse-will-fully-delist-fisker-stock-on-april-22-as-ev-maker-flounders/">delisting on April 22</a>, shares now trade over the counter. The decline is among the most rapid EV investors have seen yet. I personally would have expected either of the two companies immediately above to fold before Fisker. Nevertheless, avoid Fisker which has lost nearly 100% of its value.</p>



<h2>Workhorse (WKHS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/06/wkhs1600-300x169.png" alt="Person holding cellphone with logo of American electric vehicle company Workhorse Group Inc. (WKHS) on screen in front of webpage. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div><p><strong>Workhorse</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/wkhs-stock-quote/"><strong>WKHS</strong></a></span>) is another clearly distressed EV stock that no self-respecting investor should touch.&nbsp;</p>



<p>My colleague Chris MacDonald highlighted that distress in a recent article. He was quick to point out the fact that <a href="https://investorplace.com/2024/04/bankruptcy-alert-3-ev-stocks-to-sell-now-before-they-plunge/">Workhorse has added $80 million to its net losses over the past 9 months</a>. Meanwhile, the company has only made $8 million in sales over that period. He also agreed with me that at least two of the three EV stocks covered above are to be sold. That isn&rsquo;t to imply that we know anything that any other investor doesn&rsquo;t: these are just plain old weak stocks.</p>



<p>Beyond that, there are quantitative metrics that are also highly suggestive of a real possibility of Crash and Burn types scenario. Workhorse&rsquo;s <a href="https://www.gurufocus.com/term/zscore/WKHS">Altman Z-score stands at -9.09</a>. Anything below 1.8 is indicative of a distinct possibility of bankruptcy within the next two years. Investors should not be surprised if and when Workhorse fails.</p>



<h2>Nikola (NKLA)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/04/nkla1600-300x169.png" alt="Nikola (NKLA) company logo on a website with blurry stock market developments in the background, seen on a computer screen through a magnifying glass."><div>Source: Dennis Diatel / Shutterstock.com</div></div><p>Let me give you at least two reasons why<strong> Nikola</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/nkla-stock-quote/"><strong>NKLA</strong></a></span>) stock is going to ultimately fail.&nbsp; Let&rsquo;s first start with that Altman Z-score that we just discussed. Nikola&rsquo;s score is <a href="https://www.gurufocus.com/term/zscore/NKLA">also negative and currently stands at -4.18</a>.&nbsp;&nbsp;</p>



<p>Remember, anything below 1.8 suggests that a company is at risk of failure within the next 2 years. The example of Fisker shows that such downfalls can occur very rapidly and are highly unpredictable. Anyway, Nikola is clearly at risk based on that measure.</p>



<p>The other point to note is that Nikola is expected to pursue a reverse stock split in the near future. The company <a href="https://investorplace.com/2024/04/nkla-stock-nikola-chairman-doubles-down-on-need-for-reverse-stock-split/">recently filed a proxy statement meaning it intends to suggest the moves</a> at an upcoming shareholder meeting. Reverse stock splits almost always result in dilution for current shareholders.</p>



<p>As bad as that is, Nikola is also considering Increasing the amount of common stock available for issuance. That will result in earnings being distributed to a greater number of parties overall, further weakening the stock. All in all, this makes it one of those EV stocks to sell.</p>



<h2>General Motors (GM)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/05/red-electric-vehicle-charging-ev-stocks-closeup-1600-300x169.jpg" alt="Closeup photo of red electric vehicle being charged with blue and black charger plugged into charging port. undervalued EV stocks. Top-Rated EV Charging stocks"><div>Source: shutterstock.com/Dmytro_Yushchenko</div></div><p><strong>General Motors</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/gm-stock-quote/"><strong>GM</strong></a></span>) stock is at little risk of an absolute crash and burn scenario. The company is one of the best examples of the too-big-to-fail era. I&rsquo;m not suggesting that it&rsquo;s headed for a similar fate again. Instead, I just want to know that it is highly unlikely to run to zero unlike other stocks discussed above.</p>



<p>Anyway, General Motors is a weak EV stock. Of course, General Motors is primarily a traditional vehicle manufacturer. The company has made strong efforts to bring EVs into the fold but that has thus far been unsuccessful.&nbsp;</p>



<p>The point I&rsquo;m trying to make here is that those efforts are going to continue to harm GM stock moving forward.&nbsp;</p>



<p>Let me also state that I&rsquo;m generally not a fan of General Motors vehicles. Build quality is not strong. That goes for its internal combustion engine vehicles and its electric vehicles. GM&rsquo;s <a href="https://www.reuters.com/business/autos-transportation/us-opens-probe-into-over-3300-gm-cadillac-lyriq-vehicles-over-loss-brake-assist-2024-04-15/">Cadillac lyric EVs are being investigated for brake failure issues</a>.&nbsp; The company was also<a href="https://www.theverge.com/2023/12/23/24013357/2024-chevy-blazer-ev-stop-sale-software-problems"> forced to stop selling its Chevy Blazer EV</a>&nbsp; in late 2023 following significant software issues. GM is unlikely to fail. Conversely, it&rsquo;s also unlikely to thrive on the strength of its EVs.&nbsp;</p>



<h2>Lucid (LCID)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2024/03/lcid1600-2-300x169.png" alt="Lucid Air Touring sedan display at the Service Center. Lucid Motors (LCID) is a manufacturer of luxury EV Electric Vehicles."><div>Source: Jonathan Weiss / Shutterstock.com</div></div><p><strong>Lucid</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/lcid-stock-quote/"><strong>LCID</strong></a></span>) is trying to convince stockholders and investors that the EV stock is worthwhile. It isn&rsquo;t. A bevy of headlines touting Lucid&rsquo;s <a href="https://techcrunch.com/2024/04/09/lucid-motors-first-quarter-deliveries-production/?guccounter=1">recent record sales doesn&rsquo;t mean much</a>. The company delivered 1,967 vehicles in the most recent quarter. That was slightly more than the 1,932 vehicles it delivered during the fourth quarter of 2022.</p>



<p>The company is still projecting approximately 9,000 vehicle deliveries this year. Lucid delivered fewer than 8,500 vehicles in 2023. Those deliveries resulted in an overall loss of $2.8 billion. Let&rsquo;s assume Lucid manages to find some efficiencies this year and reduces its losses. Will it matter? Probably not. Lucid will likely produce and deliver a few hundred more vehicles in 2024 than it did in 2023. it&rsquo;s logical to then assume that the company will again produce losses into the billions.</p>



<p>Lucid probably won&rsquo;t fully fail given the substantial backing it has. However, there&rsquo;s little reason to believe that it will improve this year and perhaps beyond.</p>



<p>This concludes my list of EV stocks to sell.</p>



<p><em>On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com</em><a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"><em> Publishing Guidelines</em></a><em>.</em></p>
<div><p>Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing.</p></div><h3>More From InvestorPlace</h3>
		<ul><li>
						<a href="https://investorplace.com/2023/10/no-1-ai-investment-might-be-this-company-youve-never-heard-of/?cid=MKT764787&amp;eid=MKT771245">The #1 AI Investment Might Be This Company You&rsquo;ve Never Heard Of</a>
					</li>
																<li>
						<a href="https://investorplace.com/2023/07/elon-musks-project-omega-stuns-silicon-valley-insiders/?cid=MKT738510&amp;eid=MKT771236">Musk&rsquo;s &ldquo;Project Omega&rdquo; May Be Set to Mint New Millionaires. Here&rsquo;s How to Get In.</a>
					</li>
																<li>
						<a href="https://investorplace.com/2021/01/one-percenter-issues-urgent-warning/?cid=MKT499868&amp;eid=MKT793997">It doesn&rsquo;t matter if you have $500 or $5 million. Do this now.</a>
					</li>
									</ul><div>
			<div></div>
						<div></div>
					</div>
	
<p>The post <a href="https://investorplace.com/2024/04/danger-zone-7-ev-stocks-poised-for-a-painful-plunge/">Danger Zone: 7 EV Stocks Poised for a Painful Plunge</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

Danger Zone: 7 EV Stocks Poised for a Painful Plunge

ALLG

AYRO

BAMXF

BATT

BCCMY

BLBD

BLNK

BMCLF

BMWYY

BYMOF

CBRL

DNFGF

DNFGY

ELMSQ

ELMWQ

EVTV

FUJHF

FUJHY

GELYF

GELYY

GOEVW

GWLLF

GWLLY

HNDAF

HYLN

HYMTF

IDEX

KNDI

LAAOF

LAZR

MAHMF

MBGAF

MBGYY

MMTOF

MULN

MVST

MZDAF

MZDAY

NIOIF

NSANF

NSANY

POAHF

POAHY

PSNY

RACE

RNLSY

RNSDF

STLA

SZKMF

SZKMY

TOYOF

VFSWW

VLKAF

VLKPF

VWAPY

XIACF

XIACY

XPNGF

Press Releases

Workhorse Group Names W.W. Williams as a Service Provider for Electric Vehicles

Workhorse Group Partners with Zeem Solutions to Expand Service and Support Options for Workhorse Customers

Workhorse Group Adds Riverview International Trucks as its Fifth California Dealer

Workhorse Group Sets Fourth Quarter and Full Year 2023 Earnings Call for Tuesday, March 12, 2024 at 12:00 p.m. ET

Workhorse Group Reports Fourth Quarter and Full Year 2023 Results

Financing

Workhorse Strengthens Financial Position with Convertible Note Transaction

Commodities

Ballard Announces Appointment of Jacqui Dedo to Board of Directors

Workhorse Group Expands Dealer Network with Addition of Ziegler Truck Group

Workhorse Group Adds Milea Truck Sales and Leasing, Expanding New York Presence

BLDP

CREV

LICY

TSX:BLDP

Cenntro

Chijet Motor Company, Inc. - Ordinary Shares

Chijet Motor Co

ECD Automotive Design, Inc. - Common Stock

ECD Automotive Design

Envirotech Vehicles

Ford Motor

General Motors

Canoo

Honda Motor Co

Lucid Gr

Li Auto Inc. - American Depositary Shares

Li Auto

Lotus Technology Inc. - American Depositary Shares

Lotus Technology

Mullen Automotive

NIO Inc. American depositary shares, each representing one Class A ordinary share