Mullen Automotive (NASDAQ:MULN) stock is up 15% today on plans for a program that will bring its electric vans to Los Angeles International Airport (LAX).
What does this mean for investors? And is this a catalyst to buy MULN stock?
Let’s take a closer look.
What’s Happening With MULN Stock
Although Mullen has experienced a good deal of volatility in 2023, shares are up more than 30% for the year to date. Its most recent partnership news is driving its current leg higher.
On Thursday, the company released a statement announcing that it had entered into an agreement with aviation services provider Menzies Aviation and EV charging company Loop Global. Under it, all three companies will work together in a pilot program to supply Class 1 electric cargo vans to LAX. According to the statement, Menzies is the largest company in its field, working with more than 250 airports across the globe with a fleet of more than 8,000 vehicles.
The pilot program will last for 60 days and will consist of Mullen’s vans being used in multiple airport service operations orchestrated by Menzies, including the transportation of cleaning crews to each aircraft. Loop will provide the equipment needed to charge each electric van between shifts.
David Michery, Mullen’s chairman and CEO, issued the following statement:
“Menzies is a well-respected leader in the aviation industry. Our commercial EVs are a natural fit for airport service and logistics operations. Working together with Menzies and Loop providing a full EV ecosystem solution is a great opportunity for Mullen.”
The Bottom Line for Mullen
Optimistic retail traders may see this as a turning point for MULN stock. But while this news has certainly boosted Mullen in the short term, the company’s long term prospects still remain highly questionable.
Yesterday, InvestorPlace Assistant News Writer Eddie Pan reported that the company still had not given an update on its previously announced plans to supply I-GOs to European markets.
It is also important to note that MULN’s recent growth spurts are primarily due to meme stock momentum. Until Mullen starts putting electric vehicles where it says it will, investors should pass it by.
On the date of publication, Samuel O’Brient 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.