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Workhorse Shares Shrug Off Short-Seller Report’s Allegations

  • Report alleges startup’s test vehicles plagued with problems
  • Electric-truck maker bid for major postal contract questioned
Workhorse Trucks
Workhorse TrucksSource: Workhorse Group
Updated on

Workhorse Group Inc. recovered from an early dip after a short seller published a report accusing the startup electric-vehicle manufacturer of “misleading investors” and alleging it’s unlikely to win a key contract to supply postal trucks.

The report published Thursday by Fuzzy Panda Research -- a firm that owns a short position in the company’s stock and may stand to gain from a decline in the share price -- alleges Workhorse’s postal-truck prototypes were plagued with problems and exceeded maximum cost guidelines. It also claims a postal driver was injured when a parking brake failed in one of Workhorse’s prototypes.