WKHS Surges 18% on Merger Momentum and Strategic Shifts – What’s Next for the EV Contender?

Summary
• Workhorse Group (WKHS) rockets 18.21% intraday to $0.8612, surging from a $0.7125 low to a $1.03 high.
• Q3 earnings highlight $13.8M gain on asset sale and $7.8M net loss improvement, while merger with Motiv Electric Trucks nears shareholder vote.
• Shareholders urged to act by November 25 to avoid potential restructuring.
• Technicals show RSI at 29.8 (oversold), MACD near signal line, and Bollinger Bands squeezing price near 52W low of $0.53.

Workhorse Group’s stock erupted on November 20 amid renewed merger optimism and strategic updates. The $0.8612 price reflects a dramatic rebound from its 52W low, driven by a $13.8M asset sale and a proposed Motiv merger. With 21M shares traded, the surge underscores speculative fervor ahead of a critical shareholder vote.

Merger Talks and Earnings Optimism Drive WKHS's Volatile Rally
WKHS’s 18.21% intraday surge stems from a confluence of strategic updates and merger speculation. The Q3 earnings call highlighted a $13.8M gain from the Union City facility sale-leaseback, alongside a narrowed net loss of $7.8M (vs. $25.1M in Q3 2024). Crucially, the proposed merger with Motiv Electric Trucks—set to expand product lines and reduce costs—has reignited investor interest. Shareholders are now voting on the deal by November 25, with failure risking a standalone restructuring. The stock’s volatility reflects a race against time: bulls bet on a successful merger, while bears fear dilution or liquidity crunches.

EV Sector Gains Momentum as Tesla Leads, WKHS Surges on Merger Hopes
The broader EV sector saw Tesla (TSLA) rise 0.88% intraday, while WKHS’s 18.21% jump outpaced peers. Unlike Tesla’s steady gains from production scalability, WKHS’s rally is merger-driven, not sector-wide optimism. However, both stocks face liquidity and execution risks: WKHS’s $38.2M cash reserves contrast with Tesla’s $18B, but its 88% turnover rate signals aggressive short-term positioning.

Options Playbook: High-Gamma Call and Short-Term Bets in a Volatile Setup
• RSI: 29.79 (oversold)
• MACD: -0.1145 (near signal line)
• Bollinger Bands: Price at $0.86295 (middle band), with upper at $1.215
• 200D MA: $1.208 (price below)

WKHS’s technicals suggest a short-term bounce from oversold levels, but long-term bearish pressure from the 200D MA. The key resistance at $1.03 (intraday high) and support at $0.53 (52W low) define a tight trading range. Aggressive bulls may target a break above $1.03 for a test of the 200D MA, while bears watch for a drop below $0.7125 (intraday low).

Top Options Contracts:
• WKHS20260116C1 (Call, Strike: $1, Expiry: 2026-01-16)
- IV: 67.12% (high volatility)
- Leverage Ratio: 17.44% (moderate)
- Delta: 0.3618 (moderate sensitivity)
- Theta: -0.000943 (slow time decay)
- Gamma: 1.606 (high sensitivity to price swings)
- Turnover: 0 (low liquidity)
- Payoff at 5% Upside: $0.9042 → $0.00 (out of the money)
- Why: High gamma and leverage make this call ideal for a sharp rally beyond $1, but low turnover risks execution delays.

Hook: Aggressive bulls may consider WKHS20260116C1 into a break above $1.03, but watch for liquidity constraints.

Backtest Workhorse Group Stock Performance
Below is the event-study back-test of Workhorse Group (WKHS.O) whenever the stock’s daily change was ≥ +18 % from 1 Jan 2022 through 19 Nov 2025. Key parameters that were filled automatically:• price_type: close – intraday surge is defined on closing change; closing price is the conventional choice for event studies. • analysis window: ±30 trading days – the engine’s default horizon for short-term event impact. • Back-test period: aligned with your request, 2022-01-01 to 2025-11-19.Summary highlights1. 11 individual surge events were detected.2. The average cumulative return after the surge was negative: • –6.7 % by day 1, widening to –34.2 % by day 30. • Benchmark (S&P 500) lost –0.5 % to –12.5 % over the same horizons, so WKHS under-performed by roughly –22 % over 30 days.3. Win-rate (fraction of events with positive excess return) never exceeded 36 % beyond day 5 and fell to 18 % for most of the window, indicating a tendency for post-spike mean reversion.4. Statistical tests show no periods of significant positive abnormal return; day-1 decline is significantly negative.Investment takeaway• Historically, chasing WKHS after an 18 %+ daily pop has not been rewarded; instead, the stock has tended to retrace sharply over the following weeks. • A contrarian (fade-the-spike) strategy—e.g., shorting or avoiding fresh longs the day after such surges—would have added value versus holding the benchmark. • Sample size is small (11 events); conclusions should be treated with caution and monitored as new data arrive.Interactive resultsYou can inspect the full event-study charts, cumulative return curves and tabled statistics in the interactive panel below.Feel free to explore the module, and let me know if you’d like additional cuts (e.g., different surge thresholds, alternative holding windows, or risk-adjusted metrics).

WKHS at Crossroads: Merger Vote and Volatility Signal High-Risk, High-Reward Play
WKHS’s 18.21% surge hinges on the November 25 shareholder vote for its Motiv merger. A 'yes' could unlock $20M in refinancing and cost synergies, while a 'no' risks standalone restructuring. Technically, a break above $1.03 (intraday high) could trigger a test of the 200D MA at $1.208, but a drop below $0.7125 (intraday low) would signal capitulation. Investors should monitor Tesla’s 0.88% intraday gain as a sector benchmark and prioritize liquidity in options trading. Act now: Vote on the merger, or short-term traders may target a bounce above $1.03 with WKHS20260116C1, but brace for volatility.