Workhorse (WKHS) Stock Climbs As GM News Hits The Tape

Workhorse Group WKHS Stock News

Workhorse Group Inc (NASDAQ: WKHS) is making a run for the top in the market this morning. However, the company hasn’t issued any news. As a result, many are wondering why the stock is up more than 15% in the market today.

The gains are the result of news released about GM that reminded investors of the company’s plans to purchase a GM facility. Here’s what’s going on:

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WKHS Stock Climbs On GM Political News

Cleveland’s News Channel 5 issued a report this morning surrounding Mike Pence visiting an automotive supplier’s plant in Lancaster to show what is being done to help the people of Lordstown.

Interestingly, the people of Lordstown, a small community, are awaiting the purchase of the Lordstown facility from GM by Workhorse Group, and it looks like Vice President Mike Pence may have let some inside information out. In a statement, Pence said:

As you know after GM made that announcement, President Trump made it clear that we wanted to see GM do better. We are very pleased that they stepped forward. Workhorse, I learned just this week, secured the financing to move forward to keep jobs in that community and we’re going to continue to look for ways to support that.

We know so far that WKHS plans on buying the Lordstown plant and that the plant comes with a price tag of $25 million. However, the last update that we received with regard to funding of the deal came back in early June, when it was announced that $25 million of the $300 million funding required had been raised.

Month’s have passed and it is a very realistic expectation that the fund raising is happening here. However, the company has yet to issue a press release informing investors that it has raised the full $300 million needed to purchase the plant.

This Could Be Very Big News

If the money is raised, the deal to purchase the Lordstown plant can move forward. As such, WKHS will have a large manufacturing facility, giving it the ability to expand manufacturing efforts and revenue in the process.

However, please note that I said this “could be” very big news. Not this “is” very big news. There is no way of getting into Vice President Pence’s brain to know what he knows. He may have been making a statement related to the $25 million of funds being raised, and he may just be late to the jump here.

Nonetheless, there’s also the strong chance that WKHS is nearing completion of funding or may have completed funding and just hasn’t informed investors quite yet. Nonetheless, this is an interesting story that’s well worth watching!

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