- Mullen stock closed above the 21-day SMA on Thursday.
- MULN shares added 7.6% on Thursday, outperforming the broader market.
- US retail sales in January fell more than expected.
- LaFontaine Automotive Group will sell the Bollinger Motors B4 Chassis Cab at two Michigan locations.
The actions of Mullen Automotive (MULN) They advanced 7.6% on Thursday, as the electric vehicle (EV) company surpassed the 21-day simple moving average (SMA) for the first time in more than a month. MULN shares closed at $7.61 per share.
The broader market also advanced Thursday, making gains more possible for the small automaker. The S&P 500 rose 0.58% on Thursday, while the Dow Jones added 0.91%. US Retail Sales for January came in at -0.8% MoM, well below the forecast of -0.1%. This raised hopes in the market that interest rate cuts could come sooner rather than later from the Federal Reserve.
The leader of electric vehiclesTesla (TSLA)rose more than 6% after a Morgan Stanley analyst predicted Elon Musk's company will hit $380 per share within 12 months.
Mullen Automotive News
Mullen just announced Wednesday that it has committed to a new partnership with LaFontaine Automotive Group as its first authorized dealer for the Bollinger Motors B4 Chassis Cab. Mullen purchased Bollinger Motors in 2022, and the Michigan-based company's B4 is an electric commercial delivery vehicle similar to a box truck.
LaFontaine Automotive Group plans to sell the B4 at two locations in Lansing and Farmington Hills, Michigan, when the vehicle reaches full production in the second half of 2024. The B4 is eligible for clean energy tax credits of up to $40,000 per vehicle, derived from the Biden administration's Inflation Reduction Act.
“Our team has positioned itself as a true fleet and commercial powerhouse,” said Brian Frania, LaFontaine's fleet and commercial director. “We have experienced tremendous growth in both business units sold and units served.”
Earlier in the week, Mullen released quarterly results for the period ending in December. After delivering 231 commercial vehicles in the quarter, Mullen reduced its quarterly losses attributable to common shareholders to $61 million, down from $377 million a year ago. Shareholders' shares fell just $1 million year-over-year to $272 million.
The total treasury went from 156 million dollars at the end of September to 89 million at the end of December. The Company expects to close a $32 million loan for vehicle production this month.
Mullen Automotive FAQ
What is Mullen Automotive?
Mullen Automotive is a publicly traded EV company headquartered in Brea, California that often uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. In addition to 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 market through a reverse merger in late 2021.
Who is the team behind Mullen Automotive?
David Michery has been the CEO of the company since he founded and incorporated it in 2014. The current company comes from the merger of CODA Automotive and Mullen Motor Cars through acquisition. Michery is accompanied 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, which 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 Mississippi facility of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Thanks to its 60% stake in Bollinger Motors, Mullen will also benefit from the company's B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. Production of the Mullen FIVE crossover is not scheduled until late 2024, but reservations are now being accepted.
Why is MULN stock trading at such a low price?
Mullen has been diluting its shares since going public in late 2021. This is because the company still has little operating income and no profits. Shares have fallen more than 99% since the company's reverse merger in November 2021, and rapid dilution is the main culprit. 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 authorized to sell up to 200 million shares.
Mullen Forecast
The December 21 and January 24 range lows at $6.95 and $6.36, respectively, appear to be acting as support for MULN stock price action in February. After convulsing in wild moves in the weeks following the reverse stock split in late December, Mullen's stock remained relatively stable for once in February.
CEO David Michery reiterated his promise not to further dilute shareholders by using debt instead of equity to finance the company's production campaign. MULN stock has settled into a pattern, going up and down between $6.70 and $7.70.
With the break above the 21-day SMA on Thursday, Mullen stock appears better positioned for a recovery. The MACD indicator has been in an uptrend since the beginning of February. A close above $8.00 is all that is needed now to persuade buyers to enter the fray.
MULN daily chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
