MULN Stock – Where to Next?

As it continues to develop its Mullen FIVE and solid-state polymer battery, Mullen Automotive Inc. (NASDAQ: MULN) could revolutionize the EV market once its flagship car launches. With the company’s solid-battery showing impressive results in its testing, MULN could be positioned to become a leader in the EV industry. Meanwhile, MULN stock is receiving increased interest after the company secured a purchase order with an Amazon delivery partner for up to 600 EV vans. With this in mind, MULN stock remains one to watch in anticipation of the Fortune 500 company announcement.

MULN Stock News

MULN first captured the spotlight for its short squeeze potential – a combination of high short interest, low float, and positive news. Currently the off-exchange short volume ratio is around 57% and short interest is around 19.22% of the float.

Options Flow

Looking at unusual whales options flow, call volume was 82% at Friday’s close and bullish premiums amounted to 56%.

However, looking at premiums above $10,000 with expiries this month, the majority of whales were bearish. A whale with a $14 thousand premium sold his call with a June 17th expiry and a strike price of $1.50 on the 2nd. Two other bears sold their calls with $18 thousand and $22 thousand premiums expiring on the 17th and the 10th. A few more bought puts with premiums ranging from $12 thousand to $17 thousand with June 17th expiries and a strike price of $1.50. But its important to note that these whales chose sweeps which shows that they are not completely convinced of their bearish positions and are hedging their bets.

The option chain with the most volume is currently calls with a strike price of $1.50 and July 15th expiry. This signals that many investors are looking at the long-term when trading options for MULN stock. However a very close second are calls with a strike price of $1.50 expiring on June 10th.

Short Squeeze

Fundamentally, Mullen’s potential short squeeze is being fueled by its impressive solid state-battery technology. The company filed a number of trademarks for its EV battery technology in 2021 which is a sign that February’s announcement was a long time coming. It’s important to mention that if this technology proves feasible, Mullen would be able to offer a better driving range than both Tesla and Lucid. While the Mullen FIVE is not scheduled to roll out until 2024, the company’s CEO Michery noted that “We can say with almost certainty that this technology, once implemented on the Mullen FIVE, will deliver over 600 miles of range on a full charge.”

This was the spark which made MULN one of the most active tickers on StockTwits and Reddit for several weeks. While some of the momentum has died out since February, MULN’s shareholder base has been re-energized with the results of its battery testing. Considering that this was the catalyst which got the ball rolling the first time, MULN stock could see bullish price action especially now that the company has been added to the Russel 2000 and 3000 indexes.

Russel 2000 & 3000

While the stock will be officially added on June 27, 2022, the recent announcement will likely fuel higher than average trading volume. This is an important catalyst for MULN because the Russell indexes capture the 4,000 largest U.S. stocks as of May 6th, ranking them by total market capitalization. These indexes are used by investment managers and institutional investors in their investment strategies and approximately $10.6 trillion in assets are benchmarked against Russell’s U.S. indexes.

As Michery – Mullen’s CEO – shared, “I believe that our inclusion in the Russell Indexes will bring Mullen Automotive great visibility within the institutional investment community. This is an excellent milestone for our Company, which will provide increased liquidity and investor awareness.”

MULN Stock & Esousa

However, one factor impacting the stock has been MULN’s securities purchase agreement with Esousa Holdings. In February, the company announced that it had received funding through a $30 million equity line from Esousa Holdings LLC and debt financing from existing shareholders. The terms of this agreement allows Esousa to purchase $30 million worth of shares at $.68 per share over 12 months. According to the agreement, Esousa is not able to own more than 9.9% of MULN’s shares. However, it does have the right to not only short MULN’s shares but to sell shares to its partners as well. In light of this agreement, some have speculated that Esousa is able to profit off of MULN’s shares using the difference between the discounted price and the market price. 

In addition to this, the company has to issue shares to Esousa to cover its equity line of credit. This means if its price per share drops, MULN would be required to issue more shares. This is why MULN recently filed a S-3 form for the issuance of up to 228 million outstanding shares – with up to 30 million issuable to Esousa. According to MULN’s filing on March 1st, Esousa holds 18 million shares directly and 1.8 million shares through Ceocast Inc. The document also states that MULN’s OS is currently at 188 million shares which shows that MULN’s share structure has been impacted as a result and MULN’s higher than average trading volume could also be attributed to the larger pool of outstanding shares. 

This is one reason why investors have speculated that Esousa is on track to takeover the company if it pushes the price per share low enough to delist MULN. It’s worth noting that Esousa Holdings LLC. and CEOCast also appear to be managed by the same Michael Wachs who was banned from the banking and brokerage industries after facing disciplinary action from the NASD in 1998. Needless to say, Esousa’s reputation is less than glowing. 

Despite concerns regarding Esousa’s increasing position in MULN, the company has taken measures to prevent a possible takeover. While issuing the 228 million shares, the company included 11 million shares issued to CEO David Michery to ensure that the management’s percentage of ownership stays close to 76%. This has effectively thwarted any attempt at a takeover since it would require the company’s own management to sell its shares.

MULN Management

Thankfully, MULN’s CEO David Michery is in it for the long haul. Michery founded the company in 2014 as a successor company from the acquisition of CODA Automotive and Mullen Motor Cars. So far he has created 12 trademarks to develop the company’s brand and vision. Michery is also known for building several companies which were later valued at hundreds of millions – a bullish sign for Mullen which will be competing against EV manufacturers with notable resources. He has also made it a goal to keep the company’s manufacturing and operations entirely based in the USA. In this way, he is determined to have Mullen Technologies play a role in shaping a self-sustaining local economy. Michery recently shared that he is “proud of the incredible progress Mullen has made so far,” before adding that the company is just getting started.

MULN received a bit of a boost following a video interview on March 16th with Milton Todd Ault III – Executive Chairman and Founder of BitNile (NASDAQ: NILE). In the interview, Michery reviews Mullen’s history commenting that it was showcased by Microsoft and Cribs at its start. Building upon Mullen’s reputation for being at the “forefront of electrifying America”, Michery acquired CODA for its intellectual property with the goal of shaping the road ahead for electric vehicle manufacturing. Commenting on Tesla’s success in the interview, Michery clearly sees Mullen as a serious contender in the EV space. 

In a recent interview with CarBuzz, Michery also showed great ambition for the company’s most anticipated EV – the Mullen FIVE – as well as its luxury model – the RS. Currently, the company plans to have a full working prototype of the RS this summer, and Michery has already shared that it will be “a quarter of a million-dollar vehicle that will compete with million-dollar vehicles”. With Michery at the helm of MULN, many shareholders are optimistic about MULN’s long-term potential in the EV space. 

CarBuzz Interview

When the interview with CarBuzz was featured on March 14th, it clearly brought some new eyes to the company – causing the stock to rally 28.9%. It’s easy to see why, since CarBuzz shared with its over 9 million monthly visitors that “The Mullen Five is a luxury crossover in the fullest sense of the word luxury”. Carbuzz followed this glowing praise by saying that Mullen  “will be joining Tesla, Rivian, and Lucid as real American competition to legacy automakers as the EV market grows.” 

Carbuzz was quick to note that, for true car fans, Mullen offers all the elements of luxury that drivers could wish for. The model’s visual design is attributed to Andreas Thurner who was also responsible for the sleek interior of the 2009 Rolls-Royce Ghost. While Marian Petrelecan, an engineer who worked with BMW and Chrysler, is executing the schematics of this vision.  

As is, the Mullen Five is expected to launch with a 95-kWh battery pack giving it 325 miles of range for a base price of $55,000. However, when announcing its battery technology at the end of February, Michery noted that “We can say with almost certainty that this technology, once implemented on the Mullen FIVE, will deliver over 600 miles of range on a full charge.” Considering that the FIVE is intended to begin production in early 2024 with sales beginning at the end of the year, it’s uncertain when this technology will be put to use. 

Meanwhile, Michery has put fiscal responsibility at the company’s core. MULN saved on initial costs by purchasing the facility from Green Tech Automotive early on. In addition to this, the facility is designed with scalability in mind which means if demand is higher than estimated, Mullen will be able to meet demand in relatively short order. Now, it has room to expand its facility and in preparation for the start of production MULN is planning to extend the assembly facility and add a body and paint shop on-site. Mullen has also partnered with several notable players such as hofer powertrain, Comau, ARRK, Dürr and DSA Systems. Together, these partnerships will play a “crucial role in bringing the FIVE to market with the latest technology and in least amount of time.” 

Institutional Investors

It appears, Michery isn’t the only one bullish on Mullen’s potential since Acuitas Group Holding increased its position by 158.40% by buying an additional 18 million shares according to the March 10th filing. This comes after Insider Monkey listed MULN as one of the ten penny stocks to buy in March noting that three hedge funds held the stock in Q4 of 2021, up from 2 in the preceding quarter.

*Updated June 5th

Currently, MULN has 86 institutional shareholders holding 7,701,314 shares in total. While some big names make up this shareholders’ list such as Jane Street Group, Llc, Citadel Advisors Llc, Susquehanna International Group, Llp, and Vanguard Group Inc, one particular investment caught shareholders’ attention.

On May 12th, Blackrock Inc. disclosed owning 682,525 shares – a 249% increase from its previous position. This is a particularly bullish sign since Blackrock is the world’s largest asset manager.

*Updated March 31st

Fortune 500 Company

During an appearance on Benzinga’s Listmaker EV event, Michery grabbed investors’ attention when he promised a major announcement in Q2 regarding a Fortune 500 company purchasing MULN’s cargo vans. Michery was bullish on the company’s potential and ensured investors that there will not be any delays in production – an issue many EV companies are facing due to supply chain woes. 

Following this interview, MULN stock saw a huge increase in its trading volume which contributed to an over 40% increase in the stock as many investors speculated what the official announcement could reveal.

Defense Production Act

Meanwhile, the global shortage in oil supply could lead President Biden to invoke the Defense Production Act to increase production of minerals for EV batteries. Under this order, EV manufacturers will gain access to government funding to improve their production capacity or perform studies on metals extraction projects. If Biden actually invokes this order, MULN would benefit due to its need for liquidity – possibly accelerating its solid-state polymer battery studies.

*Updated April 4th

John Taylor Promotion

Bringing in fresh blood, MULN promoted John Taylor as its new senior vice-president of Global Manufacturing and Strategic Planning. With vast experience in the automotive industry, Taylor has overseen several plant start-ups as well as the launch of 12 vehicles in the US and globally. 

Beginning his career at General Motors, Taylor served as launch manager, operations manager, and machine and equipment manager while contributing to 11 vehicle launches. Following his tenure at GM, Taylor joined Tesla – becoming one of the EV giant’s first 50 employees. At Tesla, Taylor led its advanced manufacturing engineering group and played a pivotal role in opening Tesla’s Fremont facility. 

Moreover, Taylor was crucial in manufacturing the Tesla Model S as well as the architecture of Tesla’s future EVs. In light of this, Michery is bullish “John’s international manufacturing experience will come into play as he strategizes and evaluates Mullen’s other domestic and international manufacturing opportunities”.

Given Taylor’s vast experience in the EV industry, MULN is positioned to capitalize on his reputation and experience as it develops its manufacturing facility in Mississippi. In light of this personnel change, MULN appears to be on the right track since Taylor’s promotion could assist in the launch of the Mullen FIVE in 2024.

*Updated April 18th

Hindenburg Short Report

At the start of April, MULN stock saw a slight dip in response to a short report from Hindenburg Research. The report titled “Mullen Automotive: Yet Another Fast Talking EV Hustle” highlights Michery’s past CEO roles at “nearly half a dozen failed penny stock companies, several of which had their securities registrations terminated or revoked by the SEC”. Later on, the report predicts that shares resulting from its dilutive capital “will likely become available for sale in a matter of weeks, which we expect will crush the stock”.

The lengthy report takes a jab at MULN’s solid state battery announcement as well as the company’s line of EV cargo vans which are reportedly rebranded from the Chinese manufacturer – Tenglong. While this is to be expected from a short-selling firm like Hindenburg Research, the most dangerous accusation appears to be that MULN misrepresented the test results regarding commercialization targets for its battery. 

This has led many analysts to compare MULN to a developer of solid-state lithium metal batteries – Quantumscape (NYSE: QS) – which spent $151.5 million on R&D last year and over $263 million for its commercial application over the last three years. Whereas, MULN appears to have uncovered this technology with much lower R&D spending – leading some to question the legitimacy of its findings.

Institutional Investors

Yet, MULN has attracted new institutional investors such as Cutler Group LP and Susquehanna International Group, Llp in April. Despite the short report, MULN stock has stayed above $2 and as is, short interest is 13.5% of the float, leading some investors to hope that a short squeeze will emerge from the bearish sentiment.

*Updated May 10th

Battery Innovation Center

Following the negative sentiment for MULN stock brought on by Hindenburg’s short report, MULN agreed with the Battery Innovation Center (BIC) to perform further testing on its solid-state polymer battery. These tests aim to determine the capacity of the battery as well as its ability to provide constant discharge over different power levels emulating the applications of EVs. Already well-known for their testing reliability, Michery is bullish these tests will “certify our solid-state battery”. With the test results set to be released in May, bullish investors are confident the results will be similar to the previous testing in February. In light of this, MULN stock could run based on positive testing results.

With this in mind, MULN intends to begin producing EV battery packs at its high voltage battery R&D facility in Monrovia. Currently modifying the facility, MULN will produce EV batteries for all of its EV programs including the ONE EV Cargo Van, FIVE EV Crossover, and DragonFLY EV. By producing batteries at its own facility, MULN is expected to reduce its dependence on third-party suppliers and limit the risks associated with supply chain tightness. Moreover, MULN will significantly reduce its costs while increasing the efficiency of battery production. Given that MULN needs more liquidity for the production of its EVs, reducing its costs could be a bullish sign for the company’s financials.

*Updated June 5th

Battery Testing Results

MULN recently shared the results of its solid-state battery testing which proved the naysayers wrong after highlighting the battery’s massive potential. Although the battery was rated at 300 Ah and 3.7 volts, MULN’s solid-state battery exceeded expectations and generated 343.28 Ah at 4.2 volts. In light of this, the solid-state battery would be able to deliver a range of over 600 miles on one charge once scaled to the vehicle pack level and at a 150-kilowatt hour equivalent. These results are in line with the previous tests conducted by EV Grid last February which launched MULN stock into the limelight.

The President and CEO of BIC – Ben Wrightsman – shared that, “The cell thus far has performed as stated, and we will continue to test additional parameters to characterize the overall capabilities and performance.” Given that solid-state batteries offer higher energy density, faster charging time, as well as being smaller and safer from traditional lithium-ion batteries, MULN has the potential to revolutionize the EV industry once its battery is incorporated in its vehicles.

To clarify on the results of the testing, Michery appeared on the Risk On Live podcast hosted by the Executive Chairman of BitNile Holdings,Inc. (NASDAQ: NILE) – Milton Todd Ault III. Unfortunately, the interview did not bolster the stock as much as expected and the stock fell roughly 15% during after hours trading.

Bezinga Interview

However, Michery joined Benzinga’s All Access show on June 3rd at 11 am Eastern time to discuss the results of the battery testing. Over the course of the interview, Michery highlighted that MULN had already made its delivery to the undisclosed Fortune 500 company. This means that the company’s pilot program began with MULN’s delivery on May 12th. Michery reported that the customer is pleased with the EV cargo vans’ performance so far and together both companies are working on the details of the PR.

The press release is expected to come out before Q2 comes to a close but the relationship between both parties is the result of over a year’s work developing the pilot program. This announcement will likely be another catalyst for MULN stock which has seen more activity since the results of BIC’s battery testing.

On that note, Michery shared that some major OEMs have started negotiations with MULN as a result of the battery results. MULN has commenced preliminary discussions with these parties and some are speculating that these talks could result in MULN selling its battery model – possibly boosting its balance sheet further down the line.

Since the battery cell can be scaled up or down for potential use in cellphones, power tools, or other technology, Michery shared that he could see Mullen licensing its technology to everyone for use like Bluetooth has with its technology.

Over the course of the interview, Michery discussed the ATVM loan application which still has a long wait ahead of it until receiving feedback from the U.S. Department of Energy. He also addressed insider selling. Michery himself has sold 1.05 million shares since March and cited the 1% rule when explaining his decision to sell. This appears to be part of Rule 144 regarding its trading volume formula. This states that “the number of equity securities you [an affiliate] may sell during any three-month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold, or if the class is listed on a stock exchange, the greater of 1% or the average reported weekly trading volume during the four weeks preceding the filing of a notice of sale on Form 144”.

The topic of dilution was also brought up and Michery confirmed that the company had enough cash to get through the year. However, the company’s development plan calls for spending $1.3 billion. While this is less than others in similar situations, MULN will need to raise additional capital in the future to fund its development.

Overall, this is part of MULN’s adherence to efficiency whenever possible which is what Michery pointed to when asked to explain MULN’s reduced spend compared to Quantumscape (NYSE: QS) – a developer of solid-state lithium metal batteries which spent $151.5 million on R&D last year alone.

Throughout the interview, Michery hinted at a significant transaction which he’d been working on over the last 24 hours. While he could not confirm that it would be finalized, he did compare Mullen to the Washington Nationals which won the world series in 2019 despite very few expecting the team to win. This bullish interview gave MULN stock a temporary boost before closing at $1.25 in after hours trading and will likely carry into the new week now that MULN has announced its inclusion on the Russel 2000 and 3000 indexes.

ATVM Loan

On that note, MULN filed an ATVM loan application with the U.S. Department of Energy for its ONE EV Cargo Van Program. If MULN is granted this loan, MULN could accelerate development of its other programs with the $65 million the company expects to receive in Q2. It is worth mentioning that the AVTM program has provided manufacturers of light-duty vehicles with more than $8 billion since its inception. 

Since the ONE EV is already competing with market leaders Ford Transit Connect and Ram Promaster City Cargo Van, its unknown whether MULN’s application for the loan will be approved. Considering that MULN has been pursuing this loan since 2019, the DOE has been following the company’s development over that period and if it receives approval then launching the FIVE in 2024 will be even more achievable for the company.

National Tour

Capitalizing on the country’s enthusiasm for EVs at the moment, MULN will start a six-week national test drive tour for its flagship car in October. During this tour, FIVE reservation holders will be able to test drive and experience the FIVE in person for the first time. At the same time, MULN added its advanced FIVE RS to the “Strikingly Different” U.S. test-drive tour which is planned for spring 2023. Given the high capabilities of the FIVE RS, customers will not be allowed to drive the car themselves. However, they will be able to ride alongside a professional IndyCar driver. As the launch of the FIVE and its variants draws closer, these efforts to showcase the car could increase reservations for MULN’s flagship car.

*Updated May 13th

Mullen FIVE EV

As the company is looking to develop its flagship car – the FIVE, MULN signed a proposal with Thurner Design to develop the FIVE RS. According to this proposal, Thurner will be responsible for designing and surfacing the EV before beginning the visualization and high imaging phase. Given that Thurner is responsible for designing vehicles for major brands like Porsche, Lamborghini as well as Aston Martin, MULN is positioning the FIVE for major success when it is released. With this in mind, reservations for the FIVE more than doubled in Q2 compared to Q1 which shows the massive interest in MULN’s flagship EV.

*Updated June 5th

Linghang Guochuang Group Partnership

While MULN was partners with LGG in 2019, the outbreak of Covid-19 led both companies to sideline the relationship. However, MULN recently announced that its partnership with LGG is back in place as both parties work on the integration of its solid-state polymer cell technology into the vehicle pack level.

As MULN’s CEO David Michery shared, “Scaling from the cell level to pack level development is a major accomplishment and one I am proud to announce is progressing with LGG as our partner.”

Both companies have already been working on the project over the past few months and considering the encouraging results of the solid-state battery testing, this partnership is a bullish sign. As it stands, MULN believes that it can develop its technology for use in the second generation of the Mullen FIVE Crossover. 

New Hirings

Looking to ramp up the production of its EV programs, MULN made a number of hires for vehicle engineering, vehicle integration, powertrain systems and manufacturing. Through these new hires, MULN appears to be on track to introduce the Mullen FIVE EV in 2024 as planned. 

MULN also appointed Richard Curtis to oversee MULN’s international operations. Curtis has over 35 years of experience in the automotive industry and was the president of Imperium Motor Company. Prior to becoming Imperium’s president, Curtis was a turnaround specialist for Lithia Automotive Group, as well as a director of EVs for the largest privately owned dealership in Northern California. With great experience in the Asian market, MULN expects Curtis’ hiring will assist the company in expanding throughout Asia and other parts of the world. In this way, MULN’s FIVE EV could see increased demand around the world as its rolls out.

*Updated July 11th

Purchase Orders

While investors are anticipating the announcement of the Fortune 500 company, MULN shared positive news as the company signed an agreement with Amazon delivery partner DelPack Logistics, LLC (DPL). According to this agreement, DPL will purchase up to 600 Mullen Class 2 EV Cargo Vans over the coming 18 months – with the first 300 vans to be delivered by November 30th. Considering DPL’s reputation as a leader in last mile package delivery, MULN could be well-positioned for more deals with major companies in the future. 

With this in mind, MULN delivered its first EV van under a pilot program to a telecommunications provider in the Southeast last May. The van is currently being modified to meet the requirements of the customer in anticipation of a purchase order. As the company is able to secure orders for its EV vans, MULN could be poised to continue improving its financials in the coming quarters. 

Patent Applications

Aiming to develop its Mullen Five EV, MULN filed more than 130 patents in 24 countries to support the FIVE Crossover program. These applications are related to the design and styling of the Mullen FIVE Crossover covering the exterior and interior design of the much anticipated EV. Out of these applications 19 design patents are in the US which are pending and awaiting examination. Meanwhile, the company filed 117 international design patents with 30 already granted. Based on this, MULN appears to be on the right track to start rolling out the FIVE in 2024 as planned.

Debt Reduction

Considering the company’s dependence on debt to finance its ongoing EV programs, MULN was able to eliminate $17.5 million of its debt. Based on this, MULN reduced its debt from more than $30 million to $11 million. Through this debt reduction, MULN could focus its efforts on developing its EVs. With this in mind, MULN could be well-positioned to report better financials in the coming quarters. 

Funding

Looking to accelerate the production of its EV pipeline, MULN reached an agreement to secure $275 million in funding pending shareholders’ approval. If shareholders approve this funding, MULN intends to develop its EV Cargo Van program, the FIVE EV Crossover, as well as the FIVE RS program. In light of this, MULN stock could be one to watch closely in anticipation of shareholders’ decision on this funding.

MULN Stock Financials

However, many have pointed out that despite its recent positive momentum, MULN’s financial performance has been very poor. Looking at MULN’s Q4 report, the company reported $14 million in operating costs – an $11 million increase from the same period a year earlier. However, the higher costs were likely the result of the company’s research for its polymer battery as well as ramping up the production of its EV cargo vans which are set to launch in Q2. The company reported a $4.9 million net loss in Q4 of 2020, but by Q4 of 2021 that net loss had increased to $36.5 million. Clearly this should be a concern for investors given that MULN’s financial woes put it in a dangerous situation with Esousa – dragging the stock down and forcing the company to dilute its shareholders.  

Yet, MULN’s management appears to be playing the long game with the goal of becoming profitable in 2026. The team is cognizant of the company’s position and as Petrelecan pointed out in the CarBuzz interview, they are very conservative in their finance model.

It’s worth noting that EV companies face significant upfront costs making the timeline to profitability a long one indeed. Tesla took 18 years to become profitable and the new EV on the block – Rivian – disappointed shareholders with poor Q4 earnings and delivery guidance. Even Lucid faced major setbacks before eventually being saved by the Saudi sovereign wealth fund’s significant investment. But despite its rough start, Tesla has become an EV powerhouse and Lucid is now delivering vehicles across the country. 

ATVM Loan

The same optimism could be allowed for Mullen, and as some have noted, MULN did apply for a $450 million loan from the U.S. Department of Energy’s program. This program is designed to assist companies in the EV space with the goal of reducing petroleum use in vehicles and promoting domestic manufacturing.If the company is granted this funding, then MULN’s situation could change dramatically. However, the company will have a difficult time meeting the financial viability criteria for the program. According to the criteria, loan recipients must be “financially viable without the receipt of additional Federal funding associated with the proposed project.” This means that an applicant must demonstrate a “reasonable prospect that it will be able to make payments of principal and interest on the loan as and when such payments become due under the terms of the loan documents” and that the applicant “has a net present value which is positive, taking all costs, existing and future, into account.”

As part of the application, Mullen must “develop proposals that either establish to a high level of confidence that adequate future sales will occur, or that the consequences to DOE of sales under-performance have been mitigated”. To this end, MULN intends to submit the results of its 6-month EV market exploration study which Michery stated “will play a key role in our application with the U.S. Department of Energy’s AVTM program.”

However, the DOE has specified that “In all but the most extraordinary circumstances, market studies and non-binding customer reservations to purchase vehicles or components will not be sufficient to establish adequate future sales.”

All together this indicates the MULN may not be a recipient of the loan program, but its is important to note that as soon as April it will have data from the sale of its EV cargo vans. This commercial electric vehicle alternative is highly customizable and will be available in a single or dual electric motor configuration. Depending on the results of these sales, MULN could see a boost in its financials and potentially become a more attractive applicant for the AVTM program.

*Updated March 31st

More than $65 Million Cash in Q2

The company hopes to improve its financial standing with over $65 million in cash and cash equivalents for Q2. This influx of cash will be important for propelling development of the Mullen EV Cargo Van line and the Mullen FIVE EV Crossover program. On this note, Michery shared that he believes “the Company’s balance sheet is the strongest it has ever been in our history”. In light of this, it appears MULN will be able to pay off its equity line from Esousa.

*Updated May 13th

Q2 Financials

With the company’s Q2 report set to be released May 16th, MULN stock has been gaining momentum after releasing preliminary results of its financials. These results highlighted significant growth in MULN’s financial position as the company now has $65.2 million in cash and cash equivalents mainly due to the $43.9 million raised from issuing 4.9 million Series C Preferred shares accompanied by 14.9 million warrants. 

Additionally, MULN received $29.6 million in net proceeds under the $30 million Esousa Equity Line. On that note, MULN received $15 million between late April and early May under the CEOcast equity line in exchange for 12.7 million shares. This influx of cash comes at a pivotal time for MULN as the company is advancing its battery testing as well as modifying its Monrovia facility. In light of these financing activities, MULN increased its assets by 138.5% breaking the $100 million mark.

In terms of liabilities, MULN reduced its debt significantly from last September to $22.1 million. This reduction is the result of MULN’s debt payoffs and conversion of its convertible notes. As MULN continues improving its financial position, the company is on the right track to begin manufacturing its EV models.

Media Sentiment

@pennystokgurus is bullish on MULN’s deal with DPL.

@ATL_EN is holding MULN stock for the long-term thanks to the recent deal with DPL.

@MoonMarket_ is confident the Fortune 500 company announcement could be soon.

Technical Analysis

MULN stock chart

MULN stock is currently trading at $1.24 and has supports at 1.13 and .96. The stock also shows resistances near 1.34 and 1.54. After announcing the purchase order from DPL, MULN stock ran by as much as 20%. While the company has not announced the Fortune 500 company yet, MULN stock could be a profitable hold in anticipation of this announcement.

Considering that MULN stock is currently retesting its MA support, investors could watch for this support to hold before making a decision. With this in mind, there is a gap near $1.17 on the chart that has to fill. As a result, a break through the MA support could result in MULN stock retesting its support near $1.13 which could be a good entry point for bullish investors in anticipation of the Fortune 500 company’s announcement.

MULN stock chart

Despite the company’s upcoming catalysts, accumulation has been trending downwards since late June. Meanwhile, the MACD is bullish. The RSI cooled of from 73 to 63 indicates that MULN stock remains slightly overbought but with enough room to move up. As for its share structure, MULN has an OS of 332.4 million and a float of 303.1 million.

MULN Stock Forecast

In the long-term, MULN stock is likely one to watch as it has attracted the attention of car enthusiasts and investors alike. Given the number of awards won by the Mullen FIVE for its sleek design and features, its future release in 2024 could launch the company into the same sphere as other EV manufacturers. With a national test drive tour set to start in October, many investors are anticipating positive reviews and interest for MULN’s flagship car.

In the short-term, MULN is expected to release the name of the Fortune 500 company which Mullen supplied its EV cargo vans to very soon. Depending on the company, MULN’s trading volume could top its recent explosion to 312 million on May 31st. On top of this, there could be additional developments if MULN secures the potential $275 million funding for its EV programs. If the company secures this funding, MULN could accelerate the roll out of its EV programs. In light of this, MULN stock is one to watch as these catalysts roll out. 

Investors are feeling bullish on the company after securing a purchase order from DPL. Considering that DPL is an Amazon delivery partner, this deal could pave the way for MULN to potentially strike a deal with Amazon. Additionally, MULN delivering its EV van to a telecommunications company is a catalyst to watch. As the van is being modified to meet the customer’s requirements, MULN could be positioned to announce a purchase order with this company in the near future.

If you have questions about MULN stock and where it could be heading next feel free to reach out to us in our free alerts room!

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