Workhorse Stock Is Plunging After a Reverse Split. Should You Buy the Dip?

Workhorse (WKHS) stock closed down another 7% as investors remain wary of the commercial EVs specialist after its 1-for-12 reverse stock split on Dec. 8. 

The split reduced the total number of WKHS shares outstanding from about 26 million to roughly 2.17 million only, with fractional shares being rounded up to the nearest whole number rather than issued separately. 

Even after the reverse split, Workhorse remains essentially a penny stock, trading at a little over $7 per share. 

Is It Worth Buying the Dip in Workhorse Stock?

Caution is warranted in buying the dip in WKHS stock since reverse stock splits are seldom a good omen for a publicly listed business. 

Workhorse opted for a reverse split to meet the Nasdaq’s minimum listing requirements, meaning the company would have been delisted without that strategic move. 

While that in itself doesn’t paint a particularly rosy picture, what’s even more concerning is that there’s no guarantee that WKHS will successfully achieve compliance after the split, according to its management.  

In short, the reverse split reflects structural weakness that makes Workhorse stock a super high risk, sentiment-driven investment heading into 2026. 

Fundamentals Don’t Warrant Buying WKHS Shares

WKHS shares remain unattractive as a long-term holding because the reverse split raises questions about the company’s financial health and operational performance. 

The continued selloff in Workhorse after the split suggests institutional and retail investors alike aren’t convinced that the corporate action addresses its core business challenges. 

Plus, since the firm has barely managed to pull decisively out of the penny stock category after the reverse split, it remains vulnerable to unusually high volatility and pump-and-dump behavior that often ends up hurting late investors. 

Finally, the electric vehicle sector itself is experiencing a seismic shift in investor sentiment, with traditional automakers and established players gaining favor over smaller, pure-play EV names. 

That makes Workhorse shares even more risky to own heading into 2026. 

What’s the Consensus Rating on Workhorse Group?

What’s also worth mentioning is that WKHS stock receives coverage from only three Wall Street analysts, which means it lacks deep institutional research and insights. 

And even those three analysts rate WKHS shares at “Hold” only.