As far as hot streaks go Mullen Automotive, Inc. (Nasdaq: MULN)’s is especially notable. It secured two large purchases and is in the process of securing a deal with Saudi Arabia. Additionally, there have been murmurs about new Middle Eastern deals on the horizon. As is, the recent purchases secure its short-term interest by improving its finances, and the Middle Eastern deals could potentially catapult MULN Stock into stardom in the long run. MULN’s potential Middle Eastern deals have garnered many investors’ attention with anticipation brewing over a major announcement planned to be made between Friday and Tuesday.
MULN Stock News
Securing Two Delivery Orders
After completing its first patch of vans delivery to the growing vehicles sales and leasing company MGT in late March, MULN announced that it had signed a vehicle purchase agreement with MGT for 250 Class 3 cab chassis EV trucks. The purchase agreement is valued at $15.75 million, which is around $63,000 per vehicle, and is expected to begin in August and be completed in December. Adding to its purchase orders, MULN also announced a 1000 vehicle purchase order valued at $63 million for Class 3 EV trucks from Randy Marion Automotive Group earlier this month, which will start in August and be completed in Q1 2024. With this in mind, MULN could realize significant revenues during the upcoming quarters.
Expectations for Future Earnings
MULN is estimated to have its Q2 2023 earnings on May 22nd, however, investors might have to lower their expectations as the company is set to report its first revenues during Q3 2023. With MULN delivering 19 cargo vans as of May 4th and expecting to deliver 20 more during the month at $34,500 per vehicle, MULN revenues could be around $1.3 million as of May 2023. If the company does deliver another 20 vehicles during June, MULN’s total revenues for Q3 2023 could be around $2 million resulting in an EPS of approximately -0.49. In Q4 and Q1 2024’s case, if MULN completes around 25% of its contracts in Q4 and the other 75% in Q1, MULN could be reporting revenues of around $19.6 million in Q4 with an EPS of approximately -0.37 while reporting revenues of around $59 million in Q1 2024 with an EPS of approximately -0.11. Based on these figures, MULN could be slowly building towards its path to profitability, which could potentially make the stock an exceptional long-term investment at the current PPS.
Blackrock Raising Its Stake in MULN
In other news, the investment giant BlackRock, Inc. (NYSE: BLK) revealed that it now owns 73.7 million shares of MULN, which is a whopping %178.96 increase compared to the company’s previous 13F-HR in February, where it disclosed its ownership of 26.4 million shares. As a result, BlackRock now owns around 48% of MULN’s shares which could be a bullish sign for the stock.
*Updated May 26th, 2023
Major Announcement
Fortune seems to be favoring MULN as Lawrence Harge recently stated that there will be a major announcement regarding MULN between Friday and Tuesday. That revelation came after he dropped a couple of MULN bombshells. The first one was the revelation that MULN would receive half of the capital made from the Saudi deal, and the second bombshell was that there are more Middle East deals in the works. That said, the announcement could be related to these bombshells.
While not much is known regarding the major announcement, it could be an official announcement regarding the Saudi deal. Moreover, it could be related to the additional Middle Eastern deals Hardge announced. Since all potential outcomes of the major announcement would add value to the company, MULN stock could be well-positioned to climb and retest the $1 mark.
If the Saudi deal goes through MULN should receive a whopping $5 billion which dwarfs its market cap of $162 million. Through these funds, MULN would be able to advance its technology, accelerate the development of its flagship vehicle – the Five, or expand its manufacturing capabilities.
Media Sentiment
@InvestmentGuru_ is ready to ride MULN stock’s next wave.
@Volatiler89 is bullish on MULN’s chances to rebound from its dip.
Technical Analysis
MULN stock is in a bearish trend and is trading in a downward channel. Looking at the indicators, MULN is trading below the 200, 50, and 21 MAs which is a bearish indication. Meanwhile, the RSI is neutral at 45 and the MACD is bullish but is approaching a bearish crossover.
As for the fundamentals, MULN has a major upcoming catalyst in the major announcement Hardge promised. With anticipation brewing regarding the announcement, MULN stock could soar if it is about the Saudi deal or additional Middle Eastern deals. Based on this, investors could find a good entry in MULN stock on retests of the support ahead of the upcoming announcement.
MULN Stock Forecast
MULN has been riding waves of success these past months. It secured massive purchases, which should improve its finances markedly. Moreover, MULN could potentially receive $5 billion from the Saudi deal which should drastically improve its finances and help it grow even further. Furthermore, according to Lawrence Harge, a major announcement is set to be made between Friday and Tuesday which could be about the $10 billion contract or another Middle Eastern contract. In either case, this is great news for MULN which is why its stock could surge as a result.
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