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Workhorse Discussing Merger with Electric Vehicle Manufacturer

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 7/16/2025, 11:33 am ET 7/16/2025, 11:33 am ET | 5 min 5 min read
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Workhorse Group Inc.’s stocks have been trading up by 9.27 percent, driven by significant market response to recent developments.

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Live Update At 11:33:21 EST: On Wednesday, July 16, 2025 Workhorse Group Inc. stock [NASDAQ: WKHS] is trending up by 9.27%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

When looking at Workhorse Group’s latest financial report, which provides insights into its assets, debts, and profitability, an interesting picture emerges. The numbers paint a challenging scenario for the company with some large hurdles to clear.

Over recent periods, the financial reports reveal that Workhorse has been dealing with significant losses. Their income statements, for instance, reflect an operating income loss of over $12M in the latest quarter. The massive negative profit margins, like the EBIT margin at nearly -1744%, show they are spending far more than earnings. It doesn’t stop there; their pretax profit margin and gross margin are also in the negative by massive amounts.

Debt is another glaring concern. Their long-term debt issuance soared past $33M, highlighting an aggressive strategy to fund operations. With a high debt-to-equity ratio of 1.61, it appears Workhorse is leveraging significant debt to fuel growth. This can be risky, especially in a volatile market like electric vehicles.

On a brighter note, revenue figures show a turnaround of sorts, with revenue per share at $0.70. Given the context of the negative equity and cash flow from continuing operating activities noted at -$8.2M, this could signify some small wins amidst broader setbacks.

The stock’s current financial state means any strategic merger, as hinted in the latest news developments, could be just what Workhorse needs to regain financial stability and improve market presence.

Market Reactions

The talks around a potential merger have piqued interest in the financial markets. Investors are cautiously optimistic but aware of the risks involved. This potential transaction may significantly impact Workhorse’s stock value. Historically, news of mergers or acquisitions often leads to immediate stock fluctuations, as traders react to perceived synergies or financial burdens.

An anecdote comes to mind: during a coffee chat with a friend who dabbles in stock trading, she mentioned buying shares of another company right after a merger was announced — only to watch them spike up, much to her delight. But every rose has its thorns; understanding the associated risks, especially when concerning a company burdened by debt, remains imperative.

The electric vehicle sector is known for its rapid movement and fierce competition. This potential consolidation underscores the ongoing efforts within the industry to build partnerships and enhance capabilities, a move that could pave the way for substantial growth, if handled wisely.

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Conclusion

It is evident Workhorse Group’s potential merger signifies more than just a corporate maneuver; it represents an opportunity to revitalize a financially rocky road. As the company explores strategic union with a U.S.-based manufacturer, traders await the outcome with caution and curiosity.

The fluctuating stock prices and key financial metrics elucidate the challenges Workhorse faces. Yet, this move could give them competitive leverage needed to offset their current financial struggles. Understanding the nuances of such deals remains crucial, especially in a sector where innovation can redefine market standings overnight.

As millionaire penny stock trader and teacher Tim Sykes says, “There is always another play around the corner; don’t chase just because you feel FOMO.” This wisdom serves as a reminder that while trading opportunities abound, careful consideration and patience are vital. Amid these developments, if Workhorse desires long-term success, standing firm in its resolve and strategic planning—key aspects in the world of electric vehicles—will be paramount. The story unfolds, and the market watches closely, eager to see if Workhorse can accelerate towards a brighter financial horizon.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”