Mullen Automotive (NASDAQ:MULN) stock is up 80% today after the company reported an update on its solid-state battery pack for electric vehicles.
So what else do you need to know?
Today’s jump higher is welcome news for shareholders in Mullen Automotive, who have seen MULN stock plunge in the year to date. Over the past six months, MULN stock has declined roughly 90% over concerns that the company will not be able to deliver on its solid-state battery promises.
However, the latest report shows promising results that have renewed investor confidence in Mullen Automotive.
What Happened With MULN Stock
In a news release, Mullen Automotive said that data it collected from solid-state cell testing show impressive results. Specifically, the company said its solid-state battery has the potential to power electric vehicles for 600-plus miles on a full charge, and that the battery could be recharged 50% (to over 300 miles of driving range) in 18 minutes using a DC fast charging station.
“The test data collected shows an impressive outcome and future for solid-state batteries,” David Michery, CEO and chairman of Mullen Automotive, said in the news release. “The future is bright for Mullen Automotive.”
Mullen Automotive says it plans to use a solid-state battery pack in the second-generation Mullen FIVE electric vehicle crossover that it is developing and plans to begin testing in 2025. Its first-generation FIVE electric vehicle crossover is due to enter production in late 2024 using a conventional lithium-ion battery.
Why It Matters
Solid-state batteries are often referred to as the holy grail for the electric vehicle industry. Widely believed to provide faster charging times and superior driving range than lithium-ion batteries, solid-state batteries are viewed as critical to the next generation of electric vehicles. Building on that, many see them as a necessary part of broader EV adoption.
Companies ranging from Toyota (NYSE:TM) to Panasonic are investing in the development of solid-state batteries. However, the technology is still in its infancy. For Mullen Automotive, news of progress on its solid-state battery is good news and is helping to lift the share price of the startup.
What’s Next for Mullen Automotive
While MULN stock gets a nice bounce today, the company will need to deliver more positive test results leading to production of its electric crossovers as planned in 2024 and 2025. Failure to continue showing results and to meet set timelines will cause the shares to fall further. Investors should approach the stock of this EV startup carefully given its volatility and declines in recent months.
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On the date of publication, Joel Baglole did not have (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 InvestorPlace.com Publishing Guidelines.