CEO David Michery Just Sold More Mullen (MULN) Stock

  • Michery sold 750,000 shares of Mullen Automotive (MULN) at an average price of 39 cents per share.
  • Ignacio purchased 142,500 shares between July 19 and Aug. 26.
  • Shares of MULN stock are down more than 90% year-to-date.
MULN stock - CEO David Michery Just Sold More Mullen (MULN) Stock

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Shares of Mullen Automotive (NASDAQ:MULN) are in focus following insider buys of MULN stock by CEO David Michery and Director Ignacio Novoa. Yesterday, the electric vehicle (EV) company released new information about its upcoming Five RS sports crossover EV. The Five RS is an upgraded version of the unreleased Five, which is scheduled to begin production during the fourth quarter of 2023.

The Five RS will be able to go from zero to 60 miles per hour (mph) in under two seconds and will have a top speed of more than 200 mph. Furthermore, the new EV will be manufactured at Mullen’s Tunica, Mississippi facility, and interested customers will be able to get a full look at it next April. At that time, the company will feature the Five RS in the second leg of its test-drive tour.

Mullen has set the starting price for the standard version at $55,000, with the first deliveries beginning in 2024. The price may be subject to change, as we still have a long way out until 2024. Michery added:

“The Five RS is intended to be one of the fastest vehicles on the planet, competing with some of the best and most well-known and regarded automotive marques.”

With that in mind, let’s get into the details of the MULN stock insider transactions.

CEO David Michery Sells MULN Stock

On Sept. 21, Michery received 9.62 million shares as part of a performance stock award agreement. The CEO has an extremely generous performance package and will receive 2% of total issued and outstanding common stock for each requirement fulfilled.

For example, he will receive 2% of shares issued and outstanding if Mullen produces a drivable prototype of the Mullen Five for customers to test by October 2023. Michery will gain another 2% of shares if Mullen delivers its Class One van to customers for a pilot program “under the captured fleet exemption by the end of December 2022.”

On Sept. 22, Michery sold 750,000 shares at an average price of 40 cents per share. He has now sold shares on seven separate occasions this year, bringing his total sale count to 2.53 million shares. Meanwhile, he has not purchased any shares on the open market this year. After the sale, Michery still owns 15.84 million shares.

Between July 19 and Aug. 26, Ignacio purchased 142,5000 shares of MULN at average prices ranging between 67 cents and $1.07. On Aug. 30, he received 100,000 shares as part of an equity incentive plan.

It appears Ignacio violated Securities and Exchange Commission (SEC) policies with his recent Form 4 filing. This is because company insiders must file a Form 4 detailing their transactions within two business days after the transaction occurred. Ignacio’s Form 4 was received on Sept. 28, while his purchases occurred way before that. However, this is not a major violation and will not have any material impact on Mullen as a company.

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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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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