- MULN stock is trading lower on Tuesday.
- The equity market is focused on a possible US government shutdown, Dimon’s dreaded 7% fed funds rate.
- Mullen stock has entered its first uptrend in two months.
- EPA has certified Mullen THREE electric semi truck.
Mullen Automotive (MULN), the micro-cap electric vehicle manufacturer out of Brea, California, has witnessed its stock enter a bullish uptrend for the first time since July 20. Several news items have combined to lead the MULN share price higher since September 11.
Here on Tuesday, however, the stock has begun the session down 3.6% just under $0.54. The broad equity market is shedding weight after JPMorgan’s CEO, Jamie Dimon, said the Fed could still boost interest rates to 7% and House Republicans are still refusing to pass a budget bill that could force the US federal government to shutdown certain functions starting next week.
Mullen stock news: EPA certifies Class 3 truck
Following Mullen CEO David Michery’s failure to sustain the Mullen stock price above $1 in the period before September 5, NASDAQ issued its intent to delist MULN stock from its exchange. Despite Mullen’s management team attempting to appeal the decision, Mullen’s stock price sank 60%.
Since that defeat, however, Mullen’s management team has been firing on all cylinders. The latest announcement came on Monday with the US Environmental Protection Agency (EPA) certifying Mullen’s Class 3 electric semi truck cab called the Mullen THREE. With this certification in hand, as well as the Mullen THREE completing all compliance requirements for the Federal Motor Vehicle Safety Standards license, the vehicle can now be delivered to customers.
For months, Mullen has had a $63 million back order from commercial dealer Randy Marion Automotive for 1,000 Mullen THREE models. MGT Lease Company also has an order for 250 Mullen THREE units, valued at $15.7 million. A third smaller order comes from NRTC Automation Group.
That positive announcement follows last week’s announcement that the New York Power Authority had decided to purchase a set of Mullen CAMPUS vehicles after a 60-day tryout period at a hydroelectric dam in upstate New York. The Power Authority also said it is discussing whether to purchase additional vehicles for plant operations, such as Mullen’s Class 1 EV cargo vans and Class 3 EV cab chassis trucks.
Additionally, Mullen recently received notice that both the Mullen ONE and Mullen THREE are eligible for $7,500 federal tax credits in the US, which makes them even more competitive than before.
“Total cost of ownership is critically important to commercial customers” said John Schwegman, chief commercial officer of Mullen Automotive. “Tax credits such as these, along with lower fuel and maintenance costs, show a clear advantage for Mullen’s commercial offerings compared to traditional internal combustion vehicles.”
Mullen Automotive FAQs
Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.
David Michery has been the company’s CEO since he founded and incorporated the company in 2014. The existing company came from the merging of CODA Automotive and Mullen Motor Cars through acquisition. Michery is joined by Chief Financial Officer Jonathan New, Chief Commercial Officer John Schwegman and President of the Automotive Division Calin Popa.
Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.
Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.
Mullen stock forecast
Mullen stock saw the 9-day Simple Moving Average surpass the 21-day SMA last Friday for the first time since July 20. With MULN pulling back at the start of Tuesday trading, this positive sign may not last long. However, it is still a good sign that investors are reengaging with the stock despite the NASDAQ snafu.
Bulls have three primary goals in mind. The first is conquering the 9-day SMA near $0.57. Then the $0.75 high from September 18, followed by the longer-term support-turned-resistance level of $0.90. Support remains at $0.39.
MULN daily chart