Mullen Automotive (NASDAQ:MULN) stock opened higher by more than 10% this morning after the electric vehicle (EV) company announced that the I-GO has successfully made its way to Europe. The sample I-GO vehicles are now en route to Newgate Motor Group in Ireland with an expected delivery of early January 2023. Mullen acknowledged that it had initially set the delivery date for Dec. 20 but “COVID related shutdown issues in China” resulted in a delay.
Mullen CEO David Michery added the following in the press release:
“We are excited for sales and service to get up and running with Newgate. Once established, we will look further into other opportunities for the European Market. The I-GO is a great alternative vehicle for delivery in dense metro European cities. The small size is perfect for maneuverability on tight euro streets and the zero emissions and lower cost of ownership is a great combination for our potential commercial customers.”
Let’s dive into what else investors should know as MULN stock trades today.
MULN Stock Accelerates Higher on I-GO Europe Arrival
In November, Mullen and Newgate entered into an agreement that would see the latter become the “marketing, sales, distribution and servicing agent” for Mullen’s urban commercial delivery vehicle in the U.K. and Ireland. Mullen noted that it would also enter into a dealer agreement with Newgate. That agreement encompasses a 500-vehicles-per-year purchase order and the initial sample I-GOs. The I-GO is already European Union (EU) standard homologated and certified for sale in the U.K., Germany, Spain, France and Ireland.
So, what exactly does China have to do with the delay? Well, it appears that the I-GO is not a proprietary vehicle. Rather, the vehicle is available on a Chinese wholesale website for $9,385 apiece with the seller listed as Henan Henrey Shiying Vehicle. The page shows that the product origin is Henan, China and notes a production capacity of 50,000 vehicles per year. Henan Henrey had previously listed a wholesale price of $9,080 per vehicle for orders of 50 units or more, but that is no longer mentioned on the page.
In late October, Mullen announced that it would sell each I-GO for $11,999 plus valued-added tax ( ) and local transportation costs.
With the I-GOs safely in Europe, investors are now looking forward to tomorrow’s special meeting of stockholders. At the meeting, shareholders will be able to vote on a reverse stock split, among other proposals.
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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 InvestorPlace.com Publishing Guidelines.