Following a brutally tough year in the capital market, electric vehicle manufacturer Mullen Automotive (NASDAQ:MULN) provided some encouraging news. Early this morning, management announced that the New York Power Authority (NYPA) agreed to purchase the Mullen Campus Delivery Cargo Van. As a result, MULN stock gained about 2% under choppy conditions.

According to the company’s press release, the NYPA conducted an EV pilot program at the state power organization’s turbine hydroelectric facility in northern New York. Beginning on July 6 of this year, the 60-day program concluded earlier this month. As a result, the NYPA decided to purchase the initial pilot vehicles for fleet operations at its St. Lawrence-Franklin D. Roosevelt Power Project.

Even more promising for MULN stock, the organization is considering adding NYPA locations for Mullen’s full lineup of commercial EVs. This includes the automaker’s electric-powered Class 1 cargo vans and Class 3 cab chassis trucks.

Fundamentally, what may have attracted the NYPA toward the Mullen Campus is its underlying mission purpose: provide an efficient van for low-speed, closed campus use. Leveraging the same DNA as the Mullen One (its Class 1 commercial EV), engineers designed the Campus for microenvironments.

MULN Stock Has Enticed Investors Before

Undoubtedly, today’s market news regarding MULN stock symbolizes a significant step for the underlying enterprise. While the broader EV space offers significant upside opportunities, it’s also incredibly competitive. That Mullen continues to bring substantive accomplishments to the table is noteworthy.

However, just like a quarterback racking up passing yards in a desperate bid to get back into a lopsided game, it’s not so much about putting points on the board. Rather, the concern centers on whether the latest development is enough to move the needle for MULN stock.

Below are some examples of significant Mullen news that failed to yield sustainably positive results:

• In early June 2022, Mullen CEO David Michery stated that he would reveal “everything” about an EV delivery to a Fortune 500 company. Although MULN stock popped despite a lack of news, it continued on a downward trajectory.
• In September of last year, Mullen acquired a controlling interest in EV startup Bollinger Motors. Still, MULN stock conspicuously fell shortly after the disclosure.
• In May of this year, Mullen announced receiving $263 million in purchase orders for its Class 1 and Class 3 vehicles from Randy Marion Automotive Group. However, shares fell despite the seemingly positive news.
• Last month, Mullen unveiled the completion of its first production vehicle, the Mullen Three. Although MULN initially popped higher, the news so far failed to energize the security.

With so many swings and misses, it’s natural for investors to be skeptical about Mullen Automotive.

Why It Matters

As of this writing, TipRanks shows that no analyst covers MULN stock. That’s not surprising given the volatility, with shares losing over 99% since the January opener. Still, per Google Finance, MULN’s average trading volume stands at a staggering 88 million shares, revealing significant speculative interest.

On the date of publication, Josh Enomoto 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.