President Trump's Tweet Helped Send Shares of Workhorse Higher


 
 
03:30 05/13/2019

Ohio-based automaker Workhorse WKHS  was skyrocketing over 200% on Wednesday. Shares closed at $2.65 after opening at 82 cents.

The reason why is most likely connected to a tweet from President Trump.

President Trump tweeted, 'GREAT NEWS FOR OHIO! Just spoke to Mary Barra, CEO of General Motors, who informed me that, subject to a UAW agreement etc., GM will be selling their beautiful Lordstown Plant to Workhorse, where they plan to build Electric Trucks. GM will also be spending $700,000,000 in Ohio...'

Analysts at Cowen said themselves that they believed Trump tweet was behind the surge. Cowen also argued that Trump's comments insintuated that 'Workhorse is likely to be a vendor for the US Postal Service program.'

'Based on media reports and comments from the US Postal Service, testing for the next generation vehicle is done and a request for production is due later this year,' Cowen analyst Jeffrey Osborne remarked.

Workhorse spoke to CNBC and said it was one of the finalists being considered for the postal service contract but shared no more details.

'We are pleased with this development, but note the tweet from Trump is incredibly vague as it relates to financial ramifications for Workhorse,' Osborne also added.

GM had said on Wednesday that the company is investing $700 million and creating about 450 new manufacturing jobs in Ohio.

'The U.S. economy and our core business are strong, so we can expand our commitment to U.S. manufacturing and Ohio and create job opportunities for our employees,' said GM CEO Mary Barra.

'We also expect to bring more jobs to the U.S. over time in support of the expected provisions of the USMCA.'

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