An obscure electric-truck and aircraft maker in Ohio vaulted to the forefront of U.S. politics on Wednesday after President Donald Trump tweeted the company, Workhorse Group Inc., was buying a General Motors Co. plant in its home state.
Shares of Workhorse WKHS, +50.74% rallied as much as 86% to $1.27 after the presidential tweet, its highest since September. The stock is down 90% from a record closing high of $11.41 on April 7, 2016.
A GM GM, +0.10% spokesperson said the car maker would have “a statement” at 12:30 p.m. Eastern. Workhorse’s website was down after Trump’s tweet and the company’s phone lines were constantly busy.
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
Workhorse in January announced it had closed on $35 million in new financing with Marathon Asset Management, with proceeds to be used for working capital, parts acquisitions, and to satisfy full repayment of debt incurred in July 2018.
The Lordstown plant opened in 1966 and was mothballed earlier this year, rolling out the last of the Ohio-made Chevrolet Cruze in March. Its motto was “Build it like we own it.”