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It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office
S&P 500   3,852.36
DOW   32,920.46
QQQ   306.18
Europe bans Russian diesel, other oil products over Ukraine
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
Route to Super Bowl dangerous for Mexico's avocado haulers
Biden's State of the Union to tout policy wins on economy
Cash Holders STILL Aren't Taking Steps to Prepare (Ad)
How will EU ban and West's price cap on Russian diesel work?
Evacuations urged in Ohio town as train wreck smolders
Know Your Profit Potential BEFORE You Trade! (Ad)pixel
It wasn’t me: Ex-UK PM Truss blames 'system' for her failure
'Knock at the Cabin' knocks off 'Avatar' at the box office

Two EV Stocks That Could Rally Into Year-End 

Key Points

  • A new deal with Foxconn has Lordstown Motors riding higher. 
  • Workhorse Group also announced some good news the market isn't cheering over. 
  • The fundamentals are in place for both of these stocks to reverse course. 
  • 5 stocks we like better than Workhorse Group
Two EV Stocks That Could Rally Into Year-End 

Workhorse Group (NASDAQ: WKHS) and Lordstown Motors (NASDAQ: RIDE) shares are moving in different directions post-Q3-earnings release but both stocks are set up to rally into year-end. The key takeaway from both reports is that production has begun, deliveries are being made (or on the schedule) and both should ramp in 2023. While one report was disappointing and the other coupled with other good news those drivers are near-term in nature, the long-term drivers of the EV market are production and revenue so now that those are in the picture share prices should effect a full reversal and begin moving higher. The only question is when? 

Lordstown Motors Gets Juiced By Foxconn Deal 

Lordstown Motors' success has as much to do with Foxconn as anything else because without Foxconn’s assistance the company probably would have gone bankrupt. Now, a year or so after the initial deal was announced and production of the Endurance has begun Foxconn is increasing its stake in the company. The new deal was announced a day ahead of the Q3 results and is worth $170 to Lordstown Motors and will bring Foxconn’s stake up to 18.3% of the company. The new investment will grant Foxconn 2 board seats as well and terminates the original deal. The bad news is that Lordstown Motors will have to find an OEM partner to help scale Endurance production because Foxconn and Lordstown, effectively the new EV branch of Foxconn, are already focusing on a new EV program based on Foxconn’s platforms. 

The Endurance production is begun but slowly given the fact 12 trucks have been built (as of the Q3 release) and only 500 or so will be finished in the 1st batch. The first deliveries are expected in Q4 pending regulatory approvals but this will also result in some revenue and incoming cash flow to offset spending. The company is still well-capitalized and will be even better-capitalized following the completion of the new deal but losses continue as well.  Net cash and equivalents are down 12% YOY but this burn may begin to slow with the onset of deliveries. 

Two EV Stocks That Could Rally Into Year-End 

Workhorse Falls On Mixed Results 

Workhorse Group delivered weaker-than-expected results but take that news with a grain of salt. The results were weaker than expected but revenue is up 367% YOY on the production and delivery of the newly revamped vehicles. The company’s efforts are slowed by component availability but ramping up and expected to meet the original 2022 targets. The best parts about this report are that deliveries have begun, production is ramping, and there is ample room in the outlook for the company to smash the consensus estimates. The company narrowed its target range for production to 100 to 200 vehicles but is still expecting $15 to $25 million in annual revenue compared to the $18 million expected by the analysts. 


Here is a highlight from the Q3 report that should help support the share price going into the end of the year … “Completed the transformation and expansion of Workhorse’s Union City plant into a world-class manufacturing complex, doubling available floorspace. The plant has started initial production of Class 4 vehicles, is finalizing process layout plans for W56 production scheduled to begin in Q3 2023 and is actively adding hourly staff, as it continues to ramp up production on the W4 CC and prepares for the start of production of the W750 in Q1 2023.”

The Technical Outlook: Workhorse Trades At Bottom 

Workhorse Group is trading at a bottom and may begin to move higher at any time. The Q3 results did not give a catalyst so “any time” may not be until the next earnings reporting cycle. In that event, price action may move sideways at this level until then but other news could get the stock moving. A confirmed reversal driven by news and trading volume would be a technical trigger for entry that may attract more money as well. 

Two EV Stocks That Could Rally Into Year-End 

Should you invest $1,000 in Workhorse Group right now?

Before you consider Workhorse Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Workhorse Group wasn't on the list.

While Workhorse Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Lordstown Motors (RIDE)
1.5896 of 5 stars
$1.47+2.1%N/A-1.14Reduce$2.38
Workhorse Group (WKHS)
1.8542 of 5 stars
$2.36-5.2%N/A-1.45Moderate Buy$4.75
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.

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