Why Rivian, Lucid, and Workhorse Stocks Plunged Today
With the Nasdaq Composite index dropping by more than 2.5% today, it's not surprising to see many growth stocks taking a beating. Three not-yet-profitable electric vehicle makers fit the bill as speculative growth stocks. And shares of Rivian Automotive (NASDAQ: RIVN), Lucid Group (NASDAQ: LCID), and Workhorse Group (NASDAQ: WKHS) were all taking a hit early. As of 1:54 p.m. ET, there was some relief for the stocks, but shares still traded lower as follows:
There was also news contributing to some of the day's drops.
Workhorse announced today that it entered into an agreement with one of its senior secured note holders to eliminate its debt in exchange for an issuance of shares. That deal doesn't look appealing for existing shareholders, especially at the $4.75 share price that High Trail Capital will get as a basis. That's a discount to the $5.04 per share level where the stock closed yesterday.
Source Fool.com
