Mullen Automotive (NASDAQ:MULN) sparked excitement among its loyal investor base when it announced earlier this month that it will disclose details about a pilot program it participated in with a major organization. Though MULN stock is down sharply, Mullen fans should mark their calendars for June 30, which could potentially reverse the negative trajectory.
In an interview with Benzinga on June 3, 2022, Mullen CEO David Michery offered many insights about the progress his company was making. In particular, shareholders of MULN stock latched onto the promised release of a press statement which will disclose Mullen’s delivery of an electric van to a Fortune 500 company.
Though Michery at the time remained coy about specific details, he mentioned that Mullen made an EV delivery to the company in question on May 12. From there, the customer put the van in its pilot program, reporting that it was “pleased” with the performance of the vehicle to date.
Further, Michery stated that “everything” – including questions about order size and delivery timelines – will be in the upcoming PR, which is scheduled for release at the end of the second quarter. By logical deduction, that would be tomorrow, June 30.
Battery Tests Bode Well for MULN Stock
Significantly, the Mullen chief executive emphasized that the deal with the mystery Fortune 500 company did not “transpire overnight.” Rather, the company has been working on this partnership for over a year. Therefore, those who have high conviction on MULN stock have incentive to wait for this announcement.
Beyond the much-hyped pilot program, Michery noted that because of “amazing” test results regarding Mullen’s battery technology, the EV manufacturer has started negotiations with a “couple of major OEMs.” Further, Mullen has commenced discussions with these parties, with Michery adding color commentary that something “very impressive” is coming down the pipe.
Though the CEO was very careful with his wording and the implications that it carried, it appeared that he left open the possibility of Mullen selling its battery technology to other manufacturers while simultaneously focusing on developing its own EV brand.
Why It Matters
While the possibility of groundbreaking news is sure to stir up Mullen fans, the reality is that MULN stock needs a robust catalyst soon. Since the start of the year, shares have tanked about 80%. However, many other EV players are suffering, including Tesla (NASDAQ:TSLA), which has shed around 35% year to date.
With companies locked into a brutal battle, everyone is looking for a distinguishing edge. It’s possible that Mullen’s deal with the mystery Fortune 500 company, along with apparently strong interest for its battery technology, could swing the needle firmly in the favor of MULN stock.
In other words, the next several hours should be very interesting.
On the date of publication, Josh Enomoto 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.