Shares of Workhorse Exploded After This Tweet from President Trump

Workhorse, an Ohio-based automaker, saw its shares surge over 200% on Wednesday after President Trump tweeted about the company.

The president tweeted, “GREAT NEWS FOR OHIO! Just spoke to Mary Barra, CEO of General Motors, who informed me that, subject to a UAW agreement etc., GM will be selling their beautiful Lordstown Plant to Workhorse, where they plan to build Electric Trucks. GM will also be spending $700,000,000 in Ohio…”

Workforce shares closed at $2.65 after opening at 82 cents on Wednesday.

Analysts at Cowen said the Trump tweet was behind the surge. Cowen also argued that Trump’s comments insintuated that “Workhorse is likely to be a vendor for the US Postal Service program.”

“Based on media reports and comments from the US Postal Service, testing for the next generation vehicle is done and a request for production is due later this year,” Cowen analyst Jeffrey Osborne remarked.

Workhorse told CNBC it was one of the finalists being considered for the postal service contract but shared no more details.

“We are pleased with this development, but note the tweet from Trump is incredibly vague as it relates to financial ramifications for Workhorse,” Osborne also added.

GM had said on Wednesday that the company is investing $700 million and creating about 450 new manufacturing jobs in Ohio.

“The U.S. economy and our core business are strong, so we can expand our commitment to U.S. manufacturing and Ohio and create job opportunities for our employees,” said GM CEO Mary Barra.

“We also expect to bring more jobs to the U.S. over time in support of the expected provisions of the USMCA.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.