What happened

Investors in Workhorse Group (WKHS -5.80%) did not have a good month in May. The electric delivery truck maker disappointed investors with its first-quarter results almost four weeks ago. But shares have rocketed more than 40% so far in June as the stock joined the ranks of meme stocks supported by retail investors. Today, however, shares are reversing course, trading down 12% as of 11:30 a.m. EDT. 

So what

The biggest spike in Workhorse shares this week occurred yesterday, but trading volume has been increasing all week. The 30-day average daily trading volume has ballooned by almost 50% in the last several days when the stock joined the group of meme stocks favored by Reddit-users looking to pump share prices. Today, however, reality seems to be setting back in. 

Red arrow descending over $100 bills.

Image source: Getty Images.

Now what

May's sharp decline came after a disappointing earnings report from the company. Workhorse only delivered six of its electric cargo trucks in the first quarter, bringing in revenue of $521,000. Yet the company had a market cap of more than $1.8 billion at Thursday's closing share price. 

As with other meme stocks, traders are banding together to move stock prices without considering business fundamentals. Those who drove up Workhorse shares this week look to be taking advantage of the stock surge and booking profits today, after taking note of the performance of the business itself.