Why has Workhorse skyrocketed by over 60% the past week

Shares of Workhorse Group ( WKHS ) jumped on Tuesday as the electric-vehicle maker was swept up in the meme-stock trading from small investors.

Workhorse shares at last check jumped 17% to $16.35 a share on more than triple average daily volume.

The rise in Workhorse’s stock, seemingly driven by no specific news, matches the activity seen in other stocks that have captured the imaginations and pocketbooks of retail traders.

However, this raises even more questions on the underlying value of the business. Workhorse Group said it only shipped six of its electric cargo delivery vans in the first quarter. Those deliveries brought in revenue of just $521,000, yet the company has a market cap of more than $2 billion at the recent share price after today’s gains.

I for one am personally sick and tired of calling this rise another “Reddit phenomenon”. Any takes on this one?

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I think the rise of communities like WSB and commission-free platforms has unlocked immense potential. Not only are we seeing trillions in new money entering the markets, we’re also able to gauge how and where this is being channeled.

I like thinking about the potential impact of decentralized forums like WSB this way: They’ve nearly 10.5MM users. Let’s assume only 50% of those users are investors with capital above a conservative benchmark $2000. That’s nearly $10bn in capital which puts WSB in the ranks of the Top 20 hedge funds, globally.