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What Is Going on With Mullen (MULN) Stock Today?

  • Mullen Automotive (MULN) is rising after releasing preliminary earnings.
  • The report pointed to increasing cash, investment and orders.
  • Mullen may still not be big enough to become a factor in the market.
MULN stock - What Is Going on With Mullen (MULN) Stock Today?

Source: Ringo Chiu / Shutterstock.com

Mullen Automotive (NASDAQ:MULN), a small electric auto maker, rose 3% in pre-market trading.

The company issued preliminary results Aug. 9, claiming $99 million of cash as of Aug. 8.

Mullen has been trying to produce an electric car called the Five, with a facility in Mississippi. It also claims an engineering office in Detroit and sales offices in California.

But Mullen remains a penny stock, opening Aug. 15 at about 85 cents a share, with a market capitalization under $400 million.

What’s Going on With MULN Stock?

MULN stock was trading at over $10 per share a year ago, but potential has not been enough to excite investors in 2022. Mullen shares are down over 90% from their highs. Other small electric car makers, like Rivian Automotive (NASDAQ:RIVN) and Lucid Group (NASDAQ:LCID), are also down on the year.

I wrote about Mullen in May, and about  CEO David Michery, a former music executive. This was a month after Hindenburg Research issued a negative report on the company. My view was that Mullen lacked the cash to meet corporate objectives.

The Aug. 9 preliminary report, however, highlighted a cash balance of $99 million, a 77% reduction in debt, and $318 million in new financial commitments. It also claimed an order from DelPack Logistics, a delivery partner for Amazon (NASDAQ:AMZN), for up to 600 electric vans, with delivery starting in November.

MULN stock has been discussed actively on Stocktwits. Bulls claim BlackRock (NYSE:BLK) is buying more shares.

What Happens Next?

The earnings, whenever they come out, will move the stock.

I personally doubt $99 million, or even $318 million, is enough cash to make a big dent in the market. Even if Mullen has valuable battery technology, as it claims, it’s getting late in the market’s evolution to capitalize on it.

I could be wrong, but my guess is Mullen stock is going nowhere fast.

On the date of publication, Dana Blankenhorn held a long position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com, tweet him at @danablankenhorn, or subscribe to his Substack.


Article printed from InvestorPlace Media, https://investorplace.com/2022/08/what-is-going-on-with-mullen-muln-stock-today/.

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