As this week winds to a close, many electric vehicle (EV) stocks finished in the red. But while Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) have been falling all day, another EV player has been rising. Mullen Automotive (NASDAQ:MULN) has been turning heads all week since a battery breakthrough sent MULN stock shooting up. Now, many eyes are watching the company closely to see if its growth continues. It hasn’t slowed down so far.
What’s Happening With MULN Stock
After flatlining all morning, MULN stock began to rise today around noon. It picked up plenty of momentum from there. Shares closed higher by 26%.
Importantly, this brings its gains for the past five days to 72%. The little-known penny stock skyrocketed when Mullen announced that it had made progress on its next-generation solid-state polymer battery pack. In its statement, the company described this feat as a “significant advancement over today’s current lithium-ion batteries.”
Why It Matters
It’s no secret that battery production is a key component of the electric vehicle race. A company that engineers an advancement in battery development will provide a significant step forward for all players.
Mullen’s achievement could certainly prove significant. As InvestorPlace Assistant Financial News Writer Eddie Pan reported, “the EV maker’s test revealed that its 150-kilowatt-hour battery pack could support ‘600-plus miles of range’ on one charge.” He also noted that solid-state batteries are considered a safe alternative to the typical lithium-ion option because they do not include a liquid electrolyte which can prove flammable.
As Cosmos Magazine states, while solid-state batteries cannot be as easily produced, they have the potential to prove more efficient.
Since the initial battery announcement, there have been no further substantial updates from Mullen. The stock continues to rise, though, and it seems that social media momentum is also taking hold. Stocktwits message volume on MULN has risen significantly while Twitter (NYSE:TWTR) users have continued to hype it up.
What It Means
MULN stock certainly has the makings of a meme stock given its strong social media support. It’s a small company, and some may doubt its long-term potential. However, that will only entice investors to keep pushing it up further. Additionally, future battery developments could send it higher.
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On the date of publication, Samuel O’Brient did not hold (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.