The Securities and Exchange Commission has reportedly launched an investigation into EV truck maker Workhorse Group (WKHS). WKHS stock fell.
The Wall Street Journal reported Wednesday that the SEC probe involving Workhorse, an early investor in embattled EV startup Lordstown (RIDE), was alluded to in a denial letter for a Freedom of Information Act request.
Neither the report nor the letter specified a reason for the probe.
Meanwhile, Lordstown is also under investigation by the SEC and the Justice Department. The probes are looking into the terms of its IPO last fall and how it reported preorders for its electric pickup truck, the Endurance.
Workhorse dumped its 11.9 million shares of Lordstown, recording a loss of $52.1 million, according to its second-quarter earnings report on Aug. 9.
Shares fell 6.8% to 9.14 on the stock market today. WKHS stock reached an all-time high of 42.96 on Feb. 4, according to MarketSmith chart analysis. But the stock gapped down 47% to 16.47 on Feb. 23, after it lost a $6 billion deal with the United States Postal Service.
Workhorse has struggled to meet targets and remain afloat. In July, it stepped back from earlier guidance to deliver 1,000 vehicles in 2021. The company reported it had sold just 14 vans in the second quarter.
Its relative strength line is flatlining after diving in February.
RIDE stock retreated 1.2%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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