Retail investors might be getting caught up in the Robinhood (NASDAQ:HOOD) IPO today. But rest assured, Reddit traders are not taking a break from their short squeeze plotting. Workhorse (NASDAQ:WKHS) has been one of the board’s favorite plays for a while now. However, WKHS stock is broadening its appeal. The short-squeeze candidate is exciting investors with a key announcement.
Workhorse is having a rough go of it lately. The company has invested a great deal of time and effort in creating the next line of delivery vehicles for the U.S. Postal Service; ultimately, it did not land the contract. Workhorse filed a complaint with the Court of Federal Claims, alleging that the USPS denied the company’s bid due to a safety error which was the fault of the test driver rather than the vehicle. The complaint, well over a month since its filing, looks no closer to resolution than it did back then.
Beyond this, the company is taking blows from the U.S. government. As the New York Times points out, the bipartisan infrastructure plan is cutting out most of its support for electric vehicles. Per the report, “transportation funding fell by $263 billion compared with the original proposal. The largest change was in the area of electric vehicle adoption, which shrank by $142 billion, or 90 percent.”
Is WKHS Stock Turning a New Corner With CEO Hiring?
WKHS stock is one of the most shorted plays on Wall Street right now. As InvestorPlace’s William White reports, WKHS stock has a short interest of nearly 35%. Luckily for the stock, r/WallStreetBets has been hip to this short interest.
While WKHS stock has long been at the mercy of a short squeeze, it is moving on some longer-term news today. That’s because the company announced the appointment of its new CEO, and it’s making holders quite happy. In a press release, the company says it is hiring Richard Dauch as the new chief executive. The selection of Dauch is a solid one on the part of Workhorse; he has a hefty resume as a CEO in the field of tech and auto engineering.
The inclusion of somebody with such a wealth of industry experience gives buyers high hopes on the company going forward. As such, the stock is seeing great interest today. Over 8 million shares have traded hands in the first hours of trading, and the stock is being lifted by over 5% on the news.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.