Electric truck manufacturer Workhorse Group suffered yet another day of steep losses. WKHS stock is on a 6-day losing streak, which looks set to continue.
Workhorse Group Inc (NASDAQ: WKHS) finished the day at $12.51, down $1.33 (-9.61%).
The Ohio-based electric truck maker remains under pressure as investors scrutinise its relationship with Lordstown Motors Inc (NASDAQ: RIDE).
WKHS stock has seen consistent selling for more than a week, resulting in a 32% loss since the 29th of June. Moreover, it’s hard to find an argument against further losses.
One of the main reasons investors are removing capital from WKHS is its arrangement with Lordstown Motors. As part of a 2019 technology licensing deal, Workhorse acquired a 10% equity stake in the struggling Lordstown. Therefore, the fate of WKHS stock is intrinsically linked to that of RIDE.
Furthermore, the once-hot EV sector has turned rather cold in the last week. Shares in rivals Tesla Inc (NASDAQ: TSLA) and NIO (NYSE: NIO) were also sharply lower in yesterday’s session.
The daily chart shows the technical outlook for WKHS is deteriorating rapidly.
Workhorse Group is below both the 100, and 200-day moving averages. Additionally, yesterday’s closing price has left the stock a whisker above the 50 DMA at $12.28. Considering the bearish momentum, it looks likely that WKHS will cross below the last of the 3 major moving averages in today’s trading.
Furthermore, the price is approaching a key level of horizontal support at $11.50. Should WKHS fail to hold above $11.50, an extension lower to $7.50 looks probable.
Although, if that plays out, the stock will start to look attractive again.
However, if WKHS climbs back above the 9th of June high at $18.59, it would indicate a turnaround in the price and negate the bearish outlook.
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