Electrice vehicle (EV) penny stock Mullen Automotive (NASDAQ:MULN) is revving up today, as shares are up about 9% on the day. Currently changing hands near 90 cents, bulls would love to see MULN stock clear the $1 mark.
What’s helping drive the stock higher is that the Southern California-based company just opened a new development center. The 16,000 square foot facility is located in Irvine, California. Mullen Automotive plans to have this center include engineering design and development, styling, program management, marketing and finance teams.
Mullen also has another building in Monrovia, California: its high-voltage facility. There, the company will have its battery, powertrain, thermal and infotainment teams.
Mullen Automotive founder, chairman, and CEO David Micher said, “This facility is a great addition and the logical next step in the evolution of our corporate footprint as we begin to scale our teams and dedicate more resources to support our EV programs.”
He added, “Irvine technology’s hub is a great location for us to anchor our EV team and provides us with the space and potential talent pool to support our growth over the next few years.”
What Does It Mean for MULN Stock?
With the rise in demand for EVs, investors hope this new facility will help Mullen Automotive continue its goal of providing EV options built solely in the United States. Further, the company’s development portfolio includes a crossover, a van and a sports car.
However, it will need more than hope to drive it higher. While Mullen has a team with experience — David Michery has been with the company since 2012 — MULN stock has not had much success.
As recently as November 2021, shares had traded north of $15. Now though, they are below $1 and made an all-time low at 52 cents in February. That’s a decline of 96% and an even bigger loss compared to its all-time high.
Despite Mullen’s penny stock status, it still commands a market capitalization of roughly $410 million. The problem is that the usual issue with early automotive makers is also plaguing Mullen. The cost of building an auto production business is expensive and capital-intensive. Throw in supply chain woes, and it’s no surprise MULN stock has struggled.
However, bulls will want to see if it can find its footing on today’s news and ultimately gain traction above $1.
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On the date of publication, Bret Kenwell 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.