Mullen Automotive (NASDAQ:MULN) stock is up slightly on news the electric vehicle maker is taking steps to accelerate production of its electric cargo van.
Specifically, Mullen Automotive has applied for a loan with the U.S. Department of Energy.
In a statement, the company said the loan will allow it to accelerate production of its electric cargo van, which investors see as a positive development. Year to date, MULN stock is down 75% at $1.32 per share.
What Happened With MULN Stock
Mullen Automotive said that it has filed for an ATVM loan that will help it ramp up production of its ONE EV Cargo van program. It filed the application on April 29 and is awaiting approval from the U.S. Department of Energy.
Investors should note the Mullen ONE EV is a light commercial cargo van, and the company says it will be one of the first in its category. Competitors currently include Ford’s (NYSE:F) Transit Connect van and the Ram Promaster City Cargo van made by General Motors (NYSE:GM).
“We are proud to announce the submission of our ATVM loan application for the Mullen ONE EV Cargo van program,” said Mullen CEO David Michery in the company’s written statement.
Why It Matters
News of the loan application is the latest in a series of positive developments related to Mullen Automotive. The company recently announced that it has begun construction on its highly anticipated battery plant. Additionally, MULN stock jumped after the company announced that it hired a former Tesla executive in a key leadership position.
All the recent developments show that Mullen Automotive is making some progress and moving in the right direction. This helps to inspire some confidence among investors. That said, Mullen Automotive continues to be a fledgling electric vehicle startup whose share price continues to erode.
In the month of April, MULN stock declined 54% amid a broader market selloff.
What’s Next for Mullen Automotive
While MULN stock rises today, the big picture related to the electric vehicle maker’s shares remains grim. As such, investors should be careful and take time to evaluate the long-term outlook before taking a position.
On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.