Shares of Mullen Automotive (NASDAQ:MULN) climbed as high as $2.77 per share today — 16% above Thursday’s close — before declining shortly after. Currently, MULN stock is recovering from a report released by short seller Hindenburg Research.
Specifically, this short report claims that Mullen is involved in several misdeeds, such as marketing China-sourced electric vehicles (EVs) as its own and falsifying claims of an advanced solid-state battery. Hindenburg even says it contacted EV Grid, the company that tested MULN’s solid-state batteries. The firm claims EV Grid CEO Tom Gage said Mullen had misinterpreted the test results. The short seller quotes Gage:
“We never would have said that. We never did say it and certainly wouldn’t have said it based on the results of testing that battery.”
So, why exactly is MULN stock up today? Here’s what investors should know.
Why MULN Stock Is Up Today
Today, Bitnile (NYSEMKT:NILE) CEO Milton Todd Ault III released an interview video with Tom Gage. What’s more, before uploading the video with Gage, Ault released another video disclosing that Bitnile had invested in Mullen privately through a subsidiary and still remains invested in the EV company.
In the interview, Gage confirmed that EV Grid tested Mullen’s battery on “one cycle.” In February, Mullen reported that its solid-sate polymer cells could have the potential to deliver “600-plus miles” of range. Gage elaborated:
“The 600 mile number [is] a number that depends on how big the car is, how big the battery is and how efficient the drivetrain and aerodynamics are. So it’s quite possible to do it. Until it’s done under observed conditions you don’t really know what you’re talking about. But if you put enough battery in a car, it can go 600 miles.”
Gage later went on to clarify that Mullen provided EV Grid with a 343 amp hour capacity battery that was “very large in physical size.” The EV Grid CEO also mentioned that the “capacity is legit.”
All told, Gage just confirmed that Mullen’s representations of its battery are correct. Gage explained that Hindenburg may have misquoted him because he had some trouble remembering details at the time. Finally, Gage stated that EV Grid is open to testing out additional Mullen batteries in the future. MULN stock closed the day up by more than 5%.
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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.