Mullen (MULN) Stock Reverses Higher Despite Absence of Fortune 500 Info

  • Mullen (MULN) stock is up slightly in early afternoon trading.
  • The startup missed a self-imposed deadline by which it was supposed to disclose the name of its Fortune 500 customer.
  • A short-selling firm has previously made many accusations against Mullen.
MULN stock - Mullen (MULN) Stock Reverses Higher Despite Absence of Fortune 500 Info

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Mullen Automotive (NASDAQ:MULN) stock dropped in pre-market trading before reversing higher after the startup did not meet a deadline for revealing the Fortune 500 company it is working with as part of a pilot program.

On March 30, Mullen CEO David Michery disclosed that the automaker had received an order for vans from a “major, major Fortune 500 company.” In early June, Michery promised that, by June 30,  the automaker would disclose the identity of its Fortune 500 customer. As of this morning, however, Mullen still has not disclosed  the customer’s identity.

MULN stock tumbled over 10% yesterday. However, despite missing its self-imposed deadline, Mullen is up nearly 2% as of this writing.

Accusations Against Mullen and Its CEO

Earlier this year, Hindenburg, a firm that was shorting MULN stock, made many accusations against the startup and Michery, its CEO. The firm alleged that Mullen had exaggerated the performance of its solid-state battery in a test. Additionally, Hindenburg suggested that Mullen could not have made as much progress as it has reported on its battery, given the low amount of money that the company has spent on research and development.

And as I noted in my April 7 column on MULN stock, Hindenburg reported that Michery had “led 5 failed penny stock companies prior to Mullen. Two had their securities registrations revoked by the [U.S. Securities and Exchange Commission], two terminated their securities registrations, and the last one merged with a speculative gold mining company.”

Mullen Has Other Problems

In my June 16 column on Mullen, I reported that BIC, an organization that tested Mullen’s batteries this year, did not appear to have posted information about deals or customers on its website. Additionally, BIC’s manager in charge of battery testing does not have any work experience aside from seven years of handling cannons in the U.S. Army.

Investors are hopeful that an update on the Fortune 500 company can help turn things around. Until Mullen provides one, MULN stock may remain under pressure.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. You can reach him on StockTwits at @larryramer.


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