While electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN) is pulling out all the stops, it can’t quite seem to generate consistently positive momentum. Earlier this morning, Bollinger Motors — a commercial EV manufacturer that Mullen controls — expanded its dealership network. Despite this good news, MULN stock slipped about 4% in the market in the early afternoon session.
According to the company’s press release, Bollinger has named two new dealership groups, which span seven states and 11 locations: Nacarato Truck Centers, which accounts for 10 locations in Florida, Georgia, Kentucky, Maryland, Tennessee and Virginia, and Nuss Truck & Equipment, which features one location in Minneapolis, Minnesota.
“These two dealership groups represent some of the busiest trucking hubs in the country and we welcome these new locations to the Bollinger family as we work to electrify fleets across the country,” stated in part Robert Bollinger, founder and CEO of Bollinger Motors.
Per the release, the network should help support the rollout of Bollinger’s commercial electric truck line, beginning with the B4 Chassis Cab in the second half of 2024. The B4 is a Class 4 commercial truck featuring a unique chassis design, which protects its 158 kilowatt hours (KWh) battery pack and components. Using the company’s language, the platform should provide “unparalleled capability and safety in the commercial market.”
MULN Stock Tumbles Despite the Positive Development
Although Mullen is making fundamental progress with its EV business, the market doesn’t seem to be responding to MULN stock. In fairness, the underlying company has been caught out with many other public enterprises as the market digests recent gains, especially in the tech sector. Nevertheless, nothing seems to resonate with investors on a consistent basis.
It’s not without trying. Below are some notable events that theoretically should have moved the needle for MULN stock:
- On Jan. 2, Mullen delivered 50 electric cargo vans to Randy Marion Automotive Group (RMA).
- On Jan. 3, management announced it hit its delivery target for RMA, invoicing a total of nearly $9.2 million.
- On Jan. 19, Bollinger Motors received vehicle orders for 40 B4 trucks.
- On Jan. 24, Mullen announced that it regained compliance with the minimum bid price requirement of the Nasdaq exchange.
- On Jan. 30, Mullen announced the opening of the Dominican Republic and Caribbean markets for commercial EVs.
It’s hardly an exhaustive list of accomplishments. Yet since the beginning of the year, MULN stock has dropped 49% of market value. In the trailing 52 weeks, it’s down nearly 99.9%.
Why It Matters
Despite the extreme volatility, MULN stock commands significant loyalty from retail investors. In part, speculation centers on Mullen’s short interest, which stands at just under 20% of its float. However, the bears have not been squeezed out of their positions consistently, presenting deep concerns for the optimists.
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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.
