- Mullen Automotive stock trades 10% lower on Tuesday.
- On Monday, Mullen announced the start of production for its Class 1 EV van.
- Effective November 2, the Mullen One received approval from the EPA for its Class 1 vehicle.
- MULN stock held above the 9-day SMA over the past several sessions for the first time since mid-September.
Mullen Automotive (MULN) stock broke below the 9-day Simple Moving Average (SMA) in Tuesday's session, ending the day down 10% at $0.2769. The previous four sessions saw MULN close above that SMA for the first time in nearly two months, and now its short-term recovery narrative appears broken. A favorite retail electric vehicle (EV) stock, MULN has been in a short-term uptrend for the past two weeks as production of its two primary commercial vehicles has ramped up.
All three major indices closed up less than 1% higher on the day. The market awaits Rivian (RIVN) results in the post-market.
Mullen stock news: Mullen One now in full production after Certificate of Conformity
On Monday, Mullen announced that it had received the Certificate of Conformity from the US Environmental Protection Agency (EPA) for its Class 1 EV delivery van – the similarly named Mullen ONE. This gives Mullen the ability to begin shipping the vehicle to customers and distributors after full production began at the beginning of the month.
The EPA approval has been a long time coming for CEO David Michery’s upstart company. At the end of 2022, Mullen announced that its primary distributor, Randy Marion Automotive, had agreed to a $200 million contract for 6,000 Mullen ONEs.
Last week the company said they were still on target to deliver 300 Mullen ONEs by the end of the year and another 6,000 vehicles in 2024.
The smaller commercial delivery van is a significant milestone for the company since its initial wholesale contract is much larger than the one for its Class 3 semi-truck chassis, which is named the Mullen THREE. That commercial vehicle has been in production since August, and Randy Marion Automotive has agreed to a $63 million purchase order for 1,000 units.
Mullen delivered ten Mullen THREEs in late September and says it's on target to deliver another 140 by the end of 2023. A full 850 Mullen THREEs are then slated for delivery in 2024.
The Mullen ONE has a starting MSRP of $34,500, but the EPA has approved it for a $7,500 federal US tax credit that will drive the full price down to $27,000.
In other news, Mullen Automotive is now in a blackout period until it delivers its 10-K filing with the Securities & Exchange Commission (SEC), which it plans to do on December 29. In the meantime, the company will hold a shareholder meeting on December 15 in order to vote on the company’s plan to keep its NASDAQ listing by effecting a reverse stock split.
Mullen Automotive FAQs
What is Mullen Automotive?
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.
Who is the team behind Mullen Automotive?
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.
What vehicles does Mullen Automotive currently offer?
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.
Why does MULN stock trade for such a low share price?
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 Automotive stock forecast
Mullen stock attempted to hold onto the 9-day SMA on the daily chart on Tuesday but failed. The past few sessions have been the first time since mid-September that MULN stock has been able to hold above this moving average, and it was more bad news for the stock's fanbase when it gave way.
On Monday, MULN temporarily rose above the 21-day SMA but then closed below it. Not since September 25 has the stock closed above this moving average, demonstrating the topside pressure on the EV stock.
News that Mullen shareholders will be voting on a reverse stock split for the third time this year in mid-December has the market feeling less confident. Additionally, the company is extending its $25 million buyback program, which was supposed to complete by the end of the year, by an additional six months. This means there may be reduced internal buying in the short term.
The support from late October near $0.22 is the only other supportive structure for traders at the moment, while bulls want to target the October 26 range high just under $0.36. With longer topside wicks on the daily candlestick chart over the past two weeks, the upside appears limited.
MULN daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.