MULN Stock: Mullen Preps 350 EVs for ‘Final Assembly’

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Mullen Automotive (NASDAQ:MULN), one of the more speculative electric vehicle (EV) stocks on the market, has been gaining attention in recent days. Specifically, MULN stock is down 2% today despite a string of recent positive announcements that one might think would cause an uptick in the beaten-down EV maker.

Today’s announcement is that the company has officially transferred 350 Class 1 vehicles to its Mississippi plant for final assembly. These Class 1 EV cargo vans will be fine-tuned and put together in the plant, with deliveries expected to start sometime later in the third quarter or Q4. Thus, investors now have a much clearer, more distinct revenue timeline to go off of.

Additionally, Mullen has made a number of other headlines in recent days. These include the company’s announcement that it will launch a new EV charging truck called the PowerUP on its recent tour. This truck is expected to be available for “immediate sale on advance order basis,” potentially contributing to Mullen’s efforts to reduce cash burn.

Yesterday, Mullen also announced that the New York Power Authority (NYPA) has initiated a pilot program on the Mullen CAMPUS. This program is aimed at reducing carbon emissions and helping New York achieve its decarbonization goals.

Let’s dive into why these catalysts don’t seem to be catching on with MULN stock investors today.

MULN Stock Sinks Despite Exciting Catalysts

The reality is that the EV space is clearly becoming more divided right now. Tesla (NASDAQ:TSLA) and other leading EV makers continue to dominate the market for not only EVs but charging technology, battery production and other key infrastructure. For companies like Mullen to achieve the scale needed to be profitable, it’s likely going to take a tremendous amount of capital.

Thus far, Mullen has burned through an enormous amount of cash and continues to produce massive losses. So, while these recent announcements may be great as they signal that revenue growth is on the horizon, it’s also true that investors in the company’s debt and equity may not support such high levels of cash burn moving forward. Accordingly, it’s likely “make it or break it” time for the company.

Mullen’s revenue growth profile may have improved via its deliveries expectations for the latter half of 2023 and its new vehicle offering. Still, though, the company has some serious hair and is best-suited for speculators. At roughly 15 cents per share, the market has already handed down its verdict. Investors need to be careful with this penny stock, even if we do see a speculative rally higher from here.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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