Workhorse Group (WKHS) Surges 28.35% on Merger Optimism, Strategic Gains

Workhorse Group (WKHS) surged 28.3459% in pre-market trading on November 21, 2025, marking a sharp rebound amid renewed optimism over its proposed merger with Motiv Electric Trucks and strategic updates. The rally followed a $13.8 million gain from the sale-leaseback of its Union City facility and a narrowed Q3 net loss of $7.8 million, contrasting with a $25.1 million loss in the prior year. Shareholders face a November 25 deadline to approve the merger, which could unlock cost synergies and refinancing opportunities, while rejection risks standalone restructuring.

Technical indicators highlight a volatile setup for WKHS, with RSI at 29.8 (oversold) and Bollinger Bands compressing near its 52-week low of $0.53. The stock remains below its 200-day moving average of $1.208, signaling long-term bearish pressure despite short-term momentum. Key resistance at $1.03 and support at $0.7125 define a tight trading range. Aggressive bulls may target a break above $1.03 to test the 200D MA, but liquidity constraints in options like WKHS20260116C1 (strike $1) pose execution risks.

Historical backtests of WKHS’s performance after 18%+ daily gains (2022–2025) reveal a pattern of mean reversion. On average, the stock declined 6.7% within one day and 34.2% over 30 days, underperforming the S&P 500 by roughly 22%. A contrarian strategy—shorting or avoiding longs post-surge—has historically added value, though sample size (11 events) limits confidence. Investors are urged to monitor the November 25 merger vote and liquidity dynamics ahead of potential follow-through moves.

Backtest assumptions focus on closing price-based event studies over ±30 trading days. Parameters include a 200-day MA benchmark and high-gamma options analysis. While the data suggest caution for long-term buyers, short-term traders may prioritize liquidity in options contracts and watch for a decisive breakout above $1.03. The merger outcome and sector-wide EV trends, including Tesla’s 0.88% intraday gain, remain critical catalysts.