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Investing.com — Workhorse Group Inc (NASDAQ:WKHS) dropped Friday after news that Hindenburg Research is short on the stock, and expecting downside of 50%.
Shares fell 7.6% after rallying sixfold since June 1.
The company has an “astronomical valuation”of about $1.5 billion despite less than $100,000 in revenue last quarter, Seeking Alpha wrote, citing Hindenberg. “We see the chance of winning a material USPS contract as virtually zero. A reality check is on its way.”
Workhorse has been trading higher based on a recent financing round, as well as having recently received federal approval for its all-electric vans. After being delayed because of the coronavirus, Workhorse said that it had successfully completed Federal Motor Vehicle Safety Standards (FMVSS) testing for its C650 and C1000 delivery vans.
Nikola Corp (NASDAQ:NKLA), which makes electric trucks, also fell, about 4%.
