Although California-based electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) has some fans on Wall Street, it certainly hasn’t been a darling of the market in 2022. It’s a company that’s making the right moves, especially as Mullen just expanded its executive team. So, investors can be bullish — but they should also be nimble and patient with MULN stock. It needs to show signs of buying activity before cautious investors can get on board with confidence.
Mullen Automotive’s investors have been on a bumpy ride, to say the least. You may recall the turmoil when short seller Hindenburg Research released a bearish report on Mullen. That occurred more than six months ago, but shareholders are still feeling the ripple effects.
Other headwinds in 2022 have included supply-chain disruptions and “sticky” inflation. The road to recovery for Mullen Automotive won’t be smooth and easy, so be an agile investor and don’t be hasty in hitting the “buy” button.
Time Your Entry Carefully With MULN Stock
When an asset is losing value rapidly, a sensible strategy is to wait until the sellers are exhausted and the buyers step in. Also, you can keep your eye on psychologically significant price levels. That way, you can buy when other traders are probably also jumping into the long side of the trade.
In the case of MULN stock, it makes sense to buy if and when the share price hits the $1 mark. First of all, the Nasdaq exchange has sometimes been known to issue de-listing warnings when a stock goes below $1 and stays there for too long.
Hence, it’s a confidence-builder when a stock that’s listed on the Nasdaq exchange gets back above $1. Also, if the Mullen share price moves back above $1, it means investors believe that the company’s strategies — including its venture in last-mile delivery EVs with the Electric Last Mile Solutions acquisition — are working.
Notable Hires Make Mullen ‘Strikingly Different’
Mullen Automotive seeks to be a “strikingly different” EV manufacturer. How can the automaker stand out from the competition, though? One way is for the company to hire C-suite executives with pedigree. And that’s exactly what Mullen is doing.
As Mullen Automotive expands into last-mile delivery vehicles, the company needs strong leadership more than ever before. To that end, the company has hired not just one but two executives with notable experience with automotive giants.
Then, Mullen brought Ronald Dixon on board as general manager of government sales, with a “focus on U.S. government vehicle procurement programs.” Dixon’s track record includes 20 years of experience leading General Motors’ (NYSE:GM) Federal Government Fleet Sales Team. Without a doubt, Borthwick and Dixon will help Mullen Automotive realize its vision of success in EV-market development and commercialization.
Just Wait and Watch MULN Stock for Now
It’s exciting to consider how Mullen Automotive can expand and prosper with the help of Borthwick and Dixon. After all, their wealth of experience will certainly benefit Mullen and its stakeholders.
Yet, it will likely take some time for Wall Street to appreciate Mullen Automotive’s strategy for success. There could be more downside ahead, so don’t be hasty in buying MULN stock. Watch for a breakthrough above the crucial $1 level, and then you can buy and hold the shares with confidence.
On the date of publication, David Moadel 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.