Electric vehicle (EV) start-up Mullen Automotive (NASDAQ:MULN) continues to be high on investors’ radar, and MULN stock is now sinking more than 6% in pre-market trading. After Mullen promised to disclose the name of the Fortune 500 company with which it said it was working by the end of the second quarter, the company has failed to uphold its commitment.
Missing Information
As I reported on July 2: “Mullen CEO David Michery disclosed [on March 30] 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.”
Mullen, however, has not yet revealed the name of the Fortune 500 firm which, according to Michery, was participating in a “pilot program” and had been “pleased” with the results of the trial.
EV Startups Are Facing Hurdles
Meanwhile, according to Seeking Alpha, the entire auto sector is viewed as likely to experience additional “supply chain disruptions and constraints in the near-term that could pressure inventory tightness into 2023 and drag on sales.” Moreover, EV startups are contending with even more pressure when it comes to “commodities” and “labor” than larger automakers, the website warned.
Good News and Bad News for MULN Stock
During the first half of the year, MULN stock tumbled 79%, and the shares have sunk 17.6% in the five trading days that ended on July 1. And importantly, as of the end of trading on July 1, the shares’ market capitalization was still $359 million.
On positive notes, the stock was added to the Russell 2000 and Russell 3000 indexes as of June 27, and the company has said that it anticipated having “in excess of $61M in cash [and] cash equivalents as of June 30.”
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.
