- Mullen Automotive (MULN) is starting to come back to life after a sharp drawdown.
- Innovative electric vehicle (EV) battery technology has the potential to put Mullen in a stronger competitive position.
- Investors should weigh the risks and then consider owning a few shares of Mullen Automotive.
Nevertheless, there’s potential for strong returns as Mullen shares are quite cheap. Eventually, the stock could provide multi-bagger gains after the automaker’s EVs are on the roadways.
It requires a strong vision and some faith to invest in Mullen Automotive. Yet, a small position could be justified for patient EV enthusiasts. After all, Mullen’s innovative technology may be the key that unlocks huge profits.
What’s Happening With MULN Stock?
The stock topped out in late 2021 at around $13. Then, it embarked on a gut-wrenching decline and finally found a bottom at 52 cents in early 2022.
Thankfully, MULN stock appears to be staging a comeback. Not long ago, it traded at $3, which represents pretty good progress.
Now, we should acknowledge the primary risk factor. In a Form 10-Q representing Mullen Automotive’s financials from 2021’s fourth quarter, the company admitted, “Since inception, we have incurred significant accumulated losses of approximately $186.8 million.”
In other words, this company isn’t wasn’t profitable at the end of last year. On the other hand, Mullen Automotive highlighted some of the company’s major tailwinds as it builds up to the rollout of its FIVE EV Crossover vehicle.
These tailwinds include “Mullen’s ownership of an EV manufacturing facility in Tunica, Mississippi, that provides plenty of room for expansion; solid reviews of the Mullen FIVE EV Crossover, and promising new developments in battery technology.”
A Battery With Startling Stats
Indeed, Mullen Automotive does have “promising new developments in battery technology” in the pipeline.
But before we dive into that, I first, want to serve up a few surprising statistics concerning Mullen’s most important vehicle, the FIVE EV Crossover. We’re talking about a range estimate of 325 miles, and an electronically limited maximum miles per hour of 155 — not too shabby.
Furthermore, the FIVE EV Crossover can go from zero to 60 miles per hour in just 3.2 seconds. But here’s the real kicker: this vehicle model has a starting price of just $55,000.
Where the rubber really meets the road, however, is Mullen Automotive’s solid-state polymer battery technology.
The company’s testing of solid-state polymer cells indicates the “potential for a 150-kilowatt-hour battery pack that delivers over 600-plus miles of range and highlights an 18-minute DC fast charge which can yield over 300 miles of range.”
With features like those, Mullen’s battery technology could someday replace, or at least compete with, the currently prevalent lithium-ion batteries.
What You Can Do Now
It’s important to be aware of the risks inherent in holding MULN stock. The company is still working toward profitability, and the stock has a lot of catching up to do.
Nonetheless, Mullen Automotive has a slew of impressive stats for its flagship vehicle. Moreover, Mullen’s in-progress battery technology could be an EV-market game changer. Therefore, it’s perfectly fine to hold a small, speculative position in the stock.
On the date of publication, David Moadel 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.