What a week in the stock market, the s, p, 500 and nasdaq 100 both closed at new highs and it seems, like everyone, is getting beyond excited for the upcoming apple and tesla stock splits. There is a lot going on, which is why it's easy to forget about one of my favorite electric vehicle stocks workhorse. What's going on moon gang, i hope you're having a great day. My name is matt and in this video i'll be discussing why? I personally think it's a great time to be buying more shares of workhorse, make sure you stick around until the end, because i will be showing you the exact levels, i'm planning on buying at if you're interested in this type of stock market related content join the Moongig by hitting the subscribe button and don't forget to turn on your notifications, so you don't miss any of the new videos alrighty then, let's dive into it, workhorse trades under the ticker symbol, wkhs and relative to everything else going on recently.

It didn't have that notable of a week, even though it did close up just over four percent, but to give this a little perspective since june, the stock is up an incredible 550 percent. I just wanted to point this out because small declines shouldn't scare you, you should be taking the bigger picture into account with that being said, i plan on holding my workhorse position for the long term. I won't be selling anytime soon for a small gain or a small loss, i'm bullish on workhorse over the coming years. For a few key reasons.

There is currently a social, political and financial push towards mass electrification. This will impact everything from passenger cars to buses, planes, trains, ships and yes, delivery vans. Workhorse is arguably the best position company to disrupt the last mile delivery market over the next five to ten years. If you haven't realized it already, both timing and positioning have a lot to do with success and right now, workhorse has both going for it.

The u.s delivery van market is huge. More than 350 000 delivery vans are sold every year at an average price of 50 000 for a total market size of 18 billion. This massive market is built on the back of old ass diesel power delivery vans over the next five to ten years. Fleet operators will upgrade and electrify fleets rapidly, which is precisely where workhorse comes in, but the fun doesn't stop there, though workhorse is proving itself as an early leader in this emerging category, their c-series electric delivery vans are more fuel-efficient and are also much cheaper, and on Top of that, as they continue to make more and more technological advancements, their efficiency will go up and the price will go down their quality product aside.

They don't really have much competition. Workhorses vans are the only medium duty electric vans permitted to sell and deliver vehicles. In all 50 states, so to sum it up compared to diesel vans, workhorses vans are simply better in terms of reach scale and distribution, and as a company we haven't even discussed the potential of their drone delivery technology, which is just another thing that will separate workhorse From the pack i know this is a great sounding narrative, but when it comes to stocks, you should take the time to look into their key financial numbers. The bears love to point out that the market cap is 1.6 billion and the revenues from last quarter were less than a hundred thousand.

These numbers are right and it is important to take note of this mismatch, but i don't think they're looking at the company properly market cap versus quarterly revenue is an important ratio for large established companies like gm or ford, but not small disruptive companies such as workhorse. You have to think about where our economy is going. Roughly 75 of the delivery van market could be electric by 2030 for a total number of 260 000 vehicles. If workhorse grabs just 10 of this market, which is pretty conservative, the revenue would be 2 billion by the year 2030..

This would roughly equate to 315 million in net profit. So the argument that workhorse is currently overvalued is just a misunderstanding about where the company is headed and keep in mind. I haven't even mentioned lordstown motors. Yet for those of you who don't know, lordstown has entered into a definitive merger agreement with diamond peak holdings.

The transaction is expected to close in the fourth quarter of 2020 and when that happens, it will trade under the new ticker symbol ride. This is a big deal, because lord sound motors is valued at 1.6 billion dollars and workhorse owns 10 of the company. If you use tesla's valuation as a benchmark, when lordstown motors goes public, workhorse's 10 stake could be worth anywhere from 420 to 700 million dollars. Honestly, there's a lot of great information in this article about valuing a company.

I would highly recommend reading it. I just wanted to quickly point out what the 10 equity will eventually be worth when you take all of this into account. I hope you can understand why i'm personally willing to hold through any chop and buy more shares on dips from a risk to reward perspective. I would always recommend buying as close to support as possible.

As you can see here, the daily chart for workhorse is currently caught in a descending triangle: slash bearish pendant, if you don't own any shares of workhorse or, if you're looking to buy more. I would target this first support level just above 14 if the bears pushed the market below this. I would then look for the low in july. At thirteen thirty six, a reach target could be this gap fill from back in june at ten dollars.

But honestly, i don't think this will be happening anytime soon, you'll most likely be much better off paying attention to these first two support levels in terms of resistance. I would first be watching for a breakout from this top trend line once the stock gets above that there are three key levels. The first would come at 17.5. That would then be followed by 19.6 and then there's the all-time high just below 23.

If you're more of a short-term trader, i would recommend taking some of your profits off the table at these key levels. If you're more of a long-term trader, i would recommend being conservatively bullish. This means buying weakness and then holding through the chop and profit-taking over the long haul. For those of you who want to mitigate your risk even further, but still want exposure to the ev sector, i would recommend checking out the fund rq, which is branded as an autonomous technology and robotics etf.

This high performing fund tracks a basket of companies that are involved with autonomous transportation, robotics and automation, 3d, printing energy storage and space exploration. At the time, i'm making this video rq just closed at a new all-time high, just below 56 dollars, and since the start of this calendar year, the fund is up a respectable 48 thanks for watching to this point in the video. I truly appreciate your support. As there's new developments with both workhorse and lordstown motors i'll make sure to keep you updated if you have any suggestions or recommendations or want to, let me know your thoughts on workhorse feel free to post a comment below if you enjoyed the video or found value In it, let me know by hitting the like button and if you want to join the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time best of luck in the markets.

You.