MULN stock makes comeback with electric van hype
- Mullen completes production of 350 Class-1 EV vans.
- On Thursday, Mullen also announced a new pilot program with the New York Power Authority.
- MULN stock gained 10.7% on Thursday.
After lacking ignition at the beginning of the week, Mullen Automotive (MULN) stock has cranked up and recovered some of the ground lost in the second half. The stock has been supported by positive news regarding the future of its electric delivery vans.
Mullen stock news: Production completed on 350 delivery vans
Mullen announced, On Friday, July 14, that it has completed initial production of 350 Class-1 EV delivery vans at its Mishawaka, Indiana, facility and sent them for final assembly at its Mississippi plant.
This follows on from more good news regarding a new pilot program begun with the New York Power Authority (NYPA). The NYPA, a large state-owned power generation and transmission company, will test Mullen’s CAMPUS delivery van at its headquarters in upstate New York. Following the testing period, the company will have the ability to purchase the vehicles.
“The Mullen CAMPUS is a highly efficient electric van designed for low-speed, closed campus use [and] has all the same DNA as the Mullen ONE but was purpose-built to be an ideal delivery solution for micro-environments,” Mullen said in a statement.
This pilot program is similar to another one Mullen has with a university in North Carolina, which is testing more than dozen of these vehicles. Six other pilot programs for the CAMPUS vehicle were previously reported at the end of June when Mullen booked its first official revenue ($308,000) from the sale of 22 of these vehicles to the Randy Marion commercial dealership.
MULN stock surged 200% on July 5 after the news it had obtained counsel to bring charges against alleged “naked short selling”. The company further whetted the appetite of bulls with the news on the following day that it was going to initiate a share buyback.
The stock seemed like it was going to the moon but gains were ultimately unsustainable, and price pulled back to close the open gap after it was revealed that the buyback policy did not oblige the company to use funds for buybacks but only gave them the option to do so.
Investors further noted that Mullen only possesses $235 million on its balance sheet from selling shares during the second quarter, much of which is required to fund the production of commercial vehicles at its Tunica, Mississippi assembly plant. The vaunted buyback, therfore, may not be a sure thing.
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.