Despite throwing everything it can at the wall, electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) continues to struggle. Most recently, management announced that it achieved a key milestone regarding its commercial EV ambitions. Nevertheless, MULN stock is falling nearly 3% in trading today.
According to a press release, the U.S. Environmental Protection Agency (EPA) granted Mullen a certification for Class 3 EV commercial vehicles on Sept. 22. Mullen also pointed out in a statement that, late last month, it began production of its Class 3 EVs.
Notably, Mullen’s Class 3 EV cab chassis truck completed all required testing protocols mandated for Federal Motor Vehicle Safety Standards (FMVSS) and compliance. Per the press release, “with EPA certification in-hand and FMVSS compliance, Mullen can now begin shipments of Class 3 EVs for customer deliveries.”
Optimism Clashes With Bearish Trading Activity Against MULN Stock
Beyond just the EPA certification, Mullen has received actual orders for its commercial vehicles, theoretically boding very well for MULN stock:
- On May 2, 2023, Mullen announced that Randy Marion Automotive placed an order for 1,000 cab chassis trucks valued at $63 million.
- On May 11, MGT Lease Company agreed to purchase 250 Class 3 EV cab chassis trucks valued at $15.7 million.
- On Aug. 28, NRTC Automation also placed an order for Mullen’s Class 3 trucks.
Naturally, Mullen Chairman and CEO David Michery expressed enormous satisfaction in the milestone EPA achievement as well:
“I am extremely proud of this important milestone and, now with EPA certification and FMVSS in-hand, we are planning to begin Class 3 deliveries this week. Mullen is fully committed to our vision and plan and is focusing in now on deliveries to our customers.”
Still, options traders apparently don’t share the same optimism when it comes to Mullen. Earlier this morning, Fintel’s options flow screener — which focuses specifically on big block trades likely made by institutions – identified a quick bearish trade. Specifically, a trader appears to have bought 911 contracts of the Sep 29, 2023 0.50 put, paying a $4,500 premium.
Why It Matters
Recently, Mullen has been busy with major announcements that theoretically should move the needle for MULN stock. Unfortunately, though, shares are down more than 99% since the beginning of this year. What’s more, Mullen has a history of delivering positive news that fails to spark upward mobility in its share price.
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On the date of publication, Josh Enomoto 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.
