Mullen Automotive (NASDAQ:MULN) just announced an agreement with a dealer partner. Now, MULN stock investors are buying up shares quickly. Reportedly, this deal involves the purchase of thousands of Mullen cargo vans and will bring in millions of dollars to the startup automaker.
Based in California, Mullen Automotive manufactures electric vehicles (EVs). Having a partner to help sell its commercial vehicles in the U.S. and provide service and parts will certainly benefit Mullen.
That’s exactly what Randy Marion Automotive Group (first commercial dealer partner. According to the press release, RMA is “one of the largest and most respected commercial vehicle dealer groups in the U.S.”) will do, as it’s now Mullen’s
Specifically, a division of RMA has agreed to purchase 6,000 of Mullen’s Class 1 EV cargo vans. This deal is worth roughly $200 million for Mullen. So, it’s not difficult to see why MULN stock investors are in a good mood today.
What’s Happening With MULN Stock?
MULN stock rallied 30% right out of the gate this morning. However, it pulled back somewhat in the first hour of trading. As of this writing, nearly 300 million shares have traded hands.
Even with that price pump, it’s still probably too early to declare victory, however. After all, shares have dropped from nearly $6 at the beginning of 2022 to less than 40 cents today.
Still, RMA CEO Randy Marion seems confident about Mullen’s future prospects. “There’s significant pent-up customer demand for Mullen to fulfill,” the executive observed, “I have many customers looking at me to find product for their companies.” Perhaps the deal between these two companies can help Mullen grow its base of loyal customers.
How 2023 will shape up for Mullen Automotive remains to be seen. In the wake of the agreement with RMA, though, it appears that MULN stock just might stage a comeback.
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On the date of publication, David Moadel 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.