Workhorse Stock Has Been Plummeting: Why?

It’s no secret that WKHS’s price has been declining for the past 3 months. The weekly chart shows a price decline of 18%. During this period, the value fell the most on Wednesday, as it dropped 6.4% that day from $ 6.69 to $ 6.26. As general markets approach the correction zone, stocks in the more aggressive EV sector face stronger headwinds than many others. This continued with the Workhorse (WKHS) stock.
Workhorse extends June rally to 706% after securing $70 million in new financing (WKHS) | Markets InsiderThe negative news hit Workhorse and the market reacted accordingly. For its part, Workhorse reported a flurry of management changes last week as the company struggles to recover from previously announced truck recalls and a temporary suspension of current production. It needs to solve its production problems. Until it shows evidence of a stable and growing business, investing in this stock will be nothing more than speculation. In addition, the company announced a securities swap agreement that will transfer shares to two existing holders of convertible bonds at a price ranging from $ 6 to $ 8.50 per share.