For now, electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) isn’t getting a lot of love on Wall Street. However, a turnaround could be imminent for MULN stock. Mullen has been highly active lately, and a recent announcement indicates that the automaker could quickly ramp up production in the coming months.
Even though Mullen Automotive stock has lost a great deal of its value, the company isn’t just sitting by idly. For instance, Mullen showcased its commercial vehicles at this year’s Government Fleet Expo and Conference. Attendees of the event “met with Mullen technology, sales and product marketing team members to talk about their fleet needs,” the company reported, “with many signing up for vehicle demos.”
Still, some folks are concerned about Mullen Automotive’s future. So, let’s see if there’s a bullish thesis to be built around out-of-favor Mullen Automotive stock in 2023.
Mullen Automotive Forms a Partnership for Service Solutions
The beatdown in MULN stock has been severe, and contrarian traders should wonder whether it’s unjustified. After all, it’s not as if Mullen Automotive lacks EV orders. In fact, the company has “received $279 million in purchase orders for Mullen Class 1 and Class 3 EV Vans and Trucks” from North Carolina vehicle dealer Randy Marion Automotive.
Better yet, Mullen Automotive has found a way to service its vehicles. This is essential because it will foster lifelong loyalty among Mullen’s customers. To achieve this, Mullen Automotive has selected Amerit Fleet Solutions to provide “service and warranty work” for Mullen’s commercial vehicles.
Amerit Fleet Solutions CEO Dan Williams pointed out that his company “has over 1,800 highly trained vehicle service technicians across the U.S.” It’s a smart move for Mullen Automotive to partner with this company now. It’s reassuring to know that Mullen’s customers can have their vehicles serviced properly, as this should bolster the automaker’s reputation and perhaps even its bottom line.
Here’s Why MULN Stock Should Rally in July
Mullen Automotive stock probably won’t recover immediately, regardless of how active Mullen is right now. It’s still not a bad idea to pick up some shares, though, since a catalyst event is set to occur fairly soon.
In particular, Mullen Automotive revealed that vehicle production is anticipated to start in July at the company’s Mississippi-based assembly facility. CEO David Michery expects Mullen to “have vehicles coming off the line and delivered to customers later this summer.”
Not only that, but Mullen Automotive will have some assistance with its EV production efforts. That’s because Mullen will work with Alabama-based NRTC Automation “for Class 3 assembly line installation and integration, including all robotics and automation systems for vehicle production.” This team-up should certainly make the production process faster and more efficient.
Previously, I expressed a bearish opinion on Mullen. However, given Mullen’s fresh announcement that the company will commence EV production in Mississippi soon, along with Mullen’s timely selection of a fleet services provider, I’ve decided investors should take another look at the startup going into July 2023.
Consider Owning Mullen Automotive Stock Before It Rallies
From production to after-purchase service, Mullen Automotive is working with experienced businesses to ramp up its operations in 2023. Yet, Mullen Automotive stock traders don’t seem to appreciate the company’s progress.
The true contrarian trade, then, is to buy MULN stock now. Just don’t over-leverage yourself, as Mullen Automotive is still a relatively small EV startup and there are risks involved.
Nonetheless, the Mullen share price is probably much lower than it ought to be. So, get ready for a summertime bounce that could put early Mullen Automotive investors in the driver’s seat.
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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.