Trump Tweet Sends Workhorse Penny Stock Surging

President Trump is known for tweeting about just about everything. However, it seems when he tweets about the economy, it can have a profound impact. Today, electric truck company Workhorse saw a 200% surge in stock prices after a tweet from Trump.

GM Plans to Sell Plant to Workhorse

General Motors is in talks with Workhorse to sell its Ohio plant to the electric truck company. This comes after GM announced plans to close the Lordstown, Ohio plant, along with three others in the United States.

GM is doing this to free up more cash for the development of its own electric and self-driving cars. Instead of allowing the plant to go used, GM began talking with Workhorse about a possible sale.

Tom Colton, the head of investor relations for Workhorse, confirmed the talks were in the preliminary stage. It currently does not know when the plant will open, when jobs would start, or how many people the company will look to employ.

Not everyone is excited about the sale though. The United Autoworkers Union has made it known it isn’t in favor of the plant being sold. “The UAW’s position is unequivocal: General Motors should assign a product to the Lordstown facility and continue operating it,” the union said in a statement.

The UAW filed a federal lawsuit against GM in February to keep the Lordstown plant open. Union representatives hope to push GM to begin building its new vehicles there. Those talks will not commence until July, making it unsure whether Workhorse will be moving there or not (yet).

Despite the lawsuit and pushback from the Union, GM does not plan to have a future in Lordstown. It does plan to hire another 450 workers at three other locations in the state of Ohio though, investing $700 million into its Ohio plants.

Mike DeWine, the Governor of Ohio, said the news from GM is still good for the three cities with plants (Parma, Moraine, Toledo). If Workhorse buys the plant, DeWine said, Ohio could still expect hundreds of jobs to be added in Lordstown.

Workhorse Stock Prices Soar

Workhorse is a growing company and would be a great addition to Ohio. The company is currently working on switching from traditional vans and trucks to electric. Later this year, it will begin production on electric delivery vans for the United Parcel Service (UPS).

How Trump’s Tweets Have Impacted The Market

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…

— Donald J. Trump (@realDonaldTrump) May 8, 2019

This isn’t the first time a tweet from President Trump has had an impact on the stock market. In fact, it happens so often, Bloomberg created an interactive graph to see what tweets were sent out when the DOW goes up or down.

There are few things that have been traditional about Trump’s presidency, but his presence on Twitter makes it doubly so. If you’re investing, it may be a good idea to keep an eye on POTUS’ tweets.

Readers, what do you think about GM’s decision to sell its Ohio plant and the Workhorse surge?

Read More

• Warren Buffett Isn’t Buying Lyft IPO Stock, Should You?
• Beyond Lyft: IPOs to Watch for in 2019
• Pinterest IPO: Is The Social Site Worth $12 Billion?
• 5 Tips for Finding Hot Cannabis Stocks in Which to Invest

Amanda Blankenship

Amanda Blankenship is a full-time stay-at-home mom. Her family recently welcomed their second child, a baby boy, into the world. She loves writing about various topics, including politics and personal finance. In her spare time, Amanda loves to play with her kids, make food from scratch, crochet, and read.