Workhorse Slumps on Report Justice Department is Probing EV-Maker
Investing.com
Published Nov 05, 2021 11:16AM ET
By Dhirendra Tripathi
Investing.com – Workhorse stock (NASDAQ:WKHS) plunged 10% Friday on a report in The Wall Street Journal that the Department of Justice has opened an investigation into the startup electric van maker.
The WSJ report said the documents didn’t reveal the focus of the inquiry being conducted by the U.S. attorney’s office in Manhattan.
The company is under a separate probe by the U.S. Securities and Exchange Commission, which was previously reported by the Journal. Workhorse has since notified the SEC of misstatements it had made to safety regulators, the report said.
Workhorse dropped its guidance in July and abruptly replaced its then CEO Duane Hughes with current incumbent Richard F. Dauch. It announced senior executive leadership appointments in September.
Workhorse stock had a stupendous rise on the back of the meme stock rally, touching a high of $42.94 on February 4 from $1.32 in March 2020. It now trades around $6.50.
It will report its third-quarter numbers Tuesday.
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