MULN Stock Forecast: Mullen Automotive surges after completing ELMS acquisition


  • NASDAQ: MULN gained 57.1% during Wednesday’s trading session. 
  • Mullen Automotive completes its acquisition of Electric Last Mile Solutions. 
  • The EV maker is also set to produce its first 300 electric delivery vans for DelPak.

 

Mullen Automotive (MULN) skyrocketed on Wednesday after a recent acquisition deal was officially completed. The company also provided plans for development for the future, and investors were eager to buy up the discounted shares. On Wednesday, shares of MULN soared by 57.1% and closed the trading session at a price of $0.34. Stocks cooled off after back-to-back positive sessions to start the week. Despite more strong earnings reports on Wednesday, 10-year treasury bond yields hit their highest levels since July 2008. Overall, the Dow Jones lost 0.3%, the S&P 500 dropped by 0.7%, and the Nasdaq sank by 0.9% during the session. 

Mullen Automotive stock price

What was the reason for Mullen’s big surge on Wednesday? The company officially completed its recent acquisition of Electric Last Mile Solutions (ELMSQ). Mullen announced that it would be using the plant in Indiana to produce the upcoming FIVE crossover EV as well as several models from another recent acquisition, Bollinger Motors. In the end, Mullen ended up paying a total of $240 million for ELMS, which is more than its own current market capitalization. The Indiana plant provides Mullen with the ability to produce up to 50,000 vehicles per year. 

Mullen also provided an update on another recent partnership, this one is with Amazon (AMZN) delivery partner DelPak Logistics. Mullen noted that the first 300 electric delivery trucks should be ready by the end of November, with the next 300 to be delivered over the next year or so. The electric last-mile delivery truck sector has heated up in recent months with RIvian (RIVN) and Canoo (GOEV) securing their own high-profile partnerships. 

MULN 5-minute chart 20-10-22

 

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