- Mullen Automotive (MULN) stock dropped below $1 not long ago.
- This looks like a buying opportunity as Mullen issues multiple positive press releases.
- Investors should consider Mullen’s momentum in the vehicle electrification space and possibly enter into a long stock position.
Clean-energy enthusiasts may know California-headquartered Mullen Automotive (NASDAQ:MULN) as an ambitious competitor in the electric vehicle (EV) market. MULN stock, however, which is on a downward trajectory, presents a bottom-fishing opportunity for traders willing to accept the inherent risks.
Admittedly, there are plenty of investable up-and-coming EV manufacturers on the market today. Picking winners is difficult and it’s not emotionally easy to buy a stock that other traders are selling.
So, understand that Mullen Automotive’s investors will probably have to deal with volatility for a while. Long-term, however, there’s strong upside potential as Mullen pushes forward with headline-grabbing innovations in vehicle electrification.
|MULN||Mullen Automotive, Inc.||$1.13|
What’s Happening with MULN Stock?
Momentum-focused traders won’t like this too much, but MULN stock recently broke below the crucial $1 level to come back up slightly above $1. Bear in mind, this is a stock that reached $15.89 during the past 12 months.
Given the company’s impressive recent developments, though, it’s not difficult to see the potential for a powerful comeback. First of all, Mullen Automotive is showcasing a high-performance EV, the Mullen FIVE RS, in the company’s “Strikingly Different” U.S. test-drive tour.
This EV model features close to 1,100 horsepower, acceleration of zero to 60 miles per hour in 1.95 seconds and a top speed of nearly 200 miles per hour. Indeed, the Mullen FIVE RS is strikingly different — and a serious threat to Mullen’s performance-car competitors.
Progressing to the Next Stage
While Mullen’s stakeholders can marvel at the company’s vehicle lineup, the real difference maker is Mullen Automotive’s battery-cell technology.
In the state of Indiana, Mullen has a powerful partner: the Battery Innovation Center, or BIC. Started in 2013, the BIC focuses on “the rapid development, testing, and commercialization of safe, reliable, and lightweight energy storage systems for defense and commercial customers.”
In conjunction with the BIC, Mullen Automotive just released a significant update concerning Mullen’s solid-state polymer battery testing. Apparently, the BIC has completed the cell preconditioning phase of testing in preparation for cell performance cycling.
Mullen expects that this technology, “when scaled to the vehicle pack level, will deliver a 150-kilowatt hour, solid-state battery” capable of delivering “over 600 miles of range on a full charge for the Mullen FIVE EV Crossover.”
Understandably, Mullen Automotive Chairman and Chief Executive Officer David Michery stated that he was “pleased with the initial preconditioning results on our solid-state polymer battery cell.” Furthermore, Michery looks forward to seeing the finalized testing results from BIC “later this month.”
What You Can Do Now
Powerful vehicles and state-of-the-art battery technology could be a winning combination for Mullen Automotive.
If you can envision Mullen leveraging this technology to outperform its EV-market competitors, then feel free to consider a position in MULN stock. Just don’t pour your entire investment account into this stock. Anything is possible, but there’s no guarantee that Mullen Automotive will provide the multi-bagger returns you may be dreaming of.
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.