Shares of Mullen Automotive (NASDAQ:MULN) stock soared higher by as much as 30% this morning. The electric vehicle (EV) maker has picked up attention on social media this month, with message volume on Stocktwits more than doubling since the start of March.
Mullen is an EV maker seeking to commercialize its batteries and provide an “end-to-end ecosystem” for consumers. The company is also currently accepting reservations for its FIVE electric SUV crossover. The vehicle boasts an estimated range of 325 miles per charge.
So, why exactly is MULN stock trading higher today?
Why Is MULN Stock Up Today?
Today’s price action for MULN stock can be attributed to a continuation of the company’s solid-state battery announcement last month. Recently, Mullen announced that it had made progress on its solid-state polymer batteries. The EV maker’s test revealed that its 150-kilowatt-hour battery pack could support “600-plus miles of range” on one charge. What’s more, an 18-minute direct current (DC) fast charge could apparently deliver over 300 miles of range.
Mullen is planning on including solid-state batteries in its second generation Mullen FIVE Crossover, which is expected to begin prototype testing in 2025. The first generation FIVE will utilize lithium-ion batteries.
What’s the big deal behind solid-state batteries? Well, solid-state batteries are seen as more safe than lithium-ion batteries because they don’t carry a flammable liquid electrolyte. Solid-state batteries also have the potential for higher energy density, which helps increase vehicle range. Plus, the batteries can recharge faster than traditional lithium-ion batteries.
In addition to solid-state, Mullen is also “conducting extensive research” on other battery types that could possibly provide an advantage over lithium-ion batteries. These include lithium-sulfur and lithium-iron-phosphate batteries.
What’s Next for Mullen Automotive?
As CEO David Michery explains, “The future is bright for Mullen Automotive.”
However, EV competition is already extremely aggressive. Mullen seeks to stand out from the crowd with its FIVE SUV crossover, which is expected to start deliveries in 2024. Production of the FIVE is to begin in late 2023. But investors also shouldn’t forget that Mullen is still a penny stock with a market capitalization under $50 million. As such, MULN stock is subject to volatile and unpredictable price movements.
Looking forward, investors interested in MULN should keep an eye out for solid-state battery and production updates.
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On the date of publication, Eddie Pan 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.