Mullen Automotive (NASDAQ:MULN) stock closed higher by 9.3% after Tesla (NASDAQ:TSLA) announced that it is preparing to open up its Supercharger network to non-Tesla electric vehicles (EVs). The company’s superchargers can recharge EVs at 250 kilowatts (kW), which provides faster and more efficient charging than standard chargers.
Tesla had previously announced that it would open its EV charging network to EV’s globally. However, the rollout has been slow and is currently only operational in Europe. It’s not exactly clear how the company’s chargers will support other EVs, although an adapter may solve the problem. In a memo about the state of the EV sector, the White House explained:
Later this year, Tesla will begin production of new Supercharger equipment that will enable non-Tesla EV drivers in North America to use Tesla Superchargers.
Electrek notes that the “equipment” mentioned is most likely a CSS connector. Europe carries CSS standards, and Supercharger stations in the country are already equipped with the adaptor.
This opens up the door for Mullen drivers to utilize Tesla’s charging network. Still, Mullen does not have a single commercial vehicle on the road yet. Reservations for the Mullen FIVE are currently live, although production for the EV won’t start until the fourth quarter of 2023.
MULN Stock: Tesla Plans on Allowing Other EVs to Use Its Supercharger Network
Meanwhile, deliveries for the FIVE are estimated to begin during Q2 of 2024. The SUV crossover will start at $55,000 and has a range estimate of 325 miles. On top of that, it will be able to accelerate from 0 to 60 miles per hour (MPH) in 3.2 seconds. Customers interested in the EV can place a reservation with a $100 refundable deposit.
In recent news, shares of MULN stock tanked last Friday after the company failed to disclose a “major, major Fortune 500 company.” In an interview last March, CEO David Michery promised to reveal the customer by the end of the second quarter, or June 30. However, no announcements were made that day. The day prior to June 30, Michery sold 350,000 shares of MULN worth $391,965. The shares were sold at an average price of $1.11 per share, and Michery still owns 6.96 million shares after the sale. Furthermore, zero Mullen insiders have purchased shares on the open market this year. That isn’t exactly a promising signal for the startup EV company.
On the bright side, Mullen announced this week that it had reduced its debt by about $17.5 million. The company now has total outstanding debt of about $11 million, compared to $30 million at the end of 2021. In addition, Mullen believes that it is now “in its best financial health in the Company’s history.”
On the date of publication, Eddie Pan did not hold (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.