Trump tweet sends stocks of electric-vehicle maker soaring
Shares of an Ohio-based electric-vehicle manufacturer jumped by more than 150 percent on Wednesday after President TrumpDonald John TrumpDOJ threatens executive privilege over Mueller report if Dems carry out contempt vote Trump touts ‘BIG FIREWORKS’ returning to Mt. Rushmore for July 4 Trump taps ex-State spokeswoman Heather Nauert to help oversee White House fellowships MORE mentioned the automaker in a tweet.
CNBC reported Wednesday that shares of Workhorse stock surged from about 82 cents to $2.35 per share after following a pair of Trump tweets hailing the sale of a shuttered General Motors plant to the electric-car company.
“GREAT NEWS FOR OHIO!” Trump tweeted Wednesday. “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 in 3 separate locations, creating another 450 jobs,” he added. “I have been working nicely with GM to get this done. Thank you to Mary B, your GREAT Governor, and Senator Rob PortmanRobert (Rob) Jones PortmanOn The Money: Stocks sink on Trump tariff threat | GOP caught off guard by new trade turmoil | Federal deficit grew 38 percent this fiscal year | Banks avoid taking position in Trump, Dem subpoena fight Trump pulls out rug from GOP on trade The Hill’s Morning Report – The heat turns up on Bill Barr MORE. With all the car companies coming back, and much more, THE USA IS BOOMING!”
….in 3 separate locations, creating another 450 jobs. I have been working nicely with GM to get this done. Thank you to Mary B, your GREAT Governor, and Senator Rob Portman. With all the car companies coming back, and much more, THE USA IS BOOMING!
— Donald J. Trump (@realDonaldTrump) May 8, 2019
GM later clarified that the company was still in talks about selling the plant to Workhorse, which is valued at around $105 million.
An analyst with Cowen Research told CNBC that the Trump tweet was behind the stock’s surge and noted that the company’s website crashed from too much traffic following the president’s remarks.
The analyst added that Workhorse was likely to partner with the federal government in the near future.
“Workhorse is likely to be a vendor for the US Postal Service program,” the analyst told CNBC. “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.”
In a press release Wednesday obtained by the network, Workhorse CEO Duane Hughes celebrated the pending deal.
“This potential agreement creates a positive outcome for all parties involved and will help solidify the leadership of Workhorse’s role in the EV community,” he reportedly said.
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