One of the key stocks in focus for investors today is Mullen Automotive (NASDAQ:MULN). Currently, MULN stock is trading 4% higher on a down day in the markets. For any stock that’s not going down right now, that’s a good thing.
This positive enthusiasm around Mullen comes from yesterday’s solid 30% rise on the company’s battery testing news. Like other electric vehicle (EV) players in the market, Mullen has turned its focus to developing solid-state batteries. The company’s solid-state polymer battery cells outperformed most investors’ expectations, showing some impressive numbers.
Solid-state batteries have come under fire from short sellers such as Hindenburg Research in recent years. Critics call this technology non-existent. Some say solid-state batteries are a decade or more from becoming a reality. In short, it’s a science issue, with investors looking for tangible evidence that solid-state batteries can work at scale.
However, some solid results from Indiana’s Battery Innovation Center (BIC) appear to show positive movement on this front. As fellow InvestorPlace contributor Eddie Pan pointed out in a recent piece, “before testing, Mullen’s battery was rated at a value of 300 ampere-hours (Ah) at 3.7 volts. BIC’s testing showed the battery carried a value of 343.28 Ah at 4.2 volts.”
For EV enthusiasts, these are some positive results. Let’s dive into what they could mean for Mullen moving forward.
MULN Stock Continues to Rise on Battery Excitement
The results showed better-than-expected performance compared to the baseline upon which these batteries were being tested. For those excited about the potential impact solid-state batteries could have on the EV sector and the electrification trend, this is a big deal. Faster charging times, better safety and higher performance are key reasons the market has looked to this technology as a real growth avenue for so long.
Seeing progress in action is encouraging to those who believe this could be just around the corner. While it may be too soon to tell how scalable these batteries are, for now, we know they work.
It’s expected that at scale, battery packs containing these solid-state batteries could increase the range of an EV to about 600 miles. That would potentially usher in a wave of new EV buyers, creating another tailwind for a sector that’s been lackluster thus far in 2022.
Personally, I think the proof is in the pudding when it comes to MULN stock. While this company has some intriguing results, how Mullen executes from here is key. For now, I’m watching this stock happily from the sidelines.
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On the date of publication, Chris MacDonald 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.