Mullen Automotive (NASDAQ:MULN) has certainly been among the hardest-hit electric vehicle (EV) stocks in the market. Year-to-date (YTD) alone, MULN stock is down more than 75% — and down much more from its previous post-pandemic peak. However, investors in MULN stock are seeing a reprieve from the selling pressure today on a key operational update from the company.

Specifically, Mullen announced in a press release that it has completed the first phase of its battery line integration at its Fullerton, California high-energy facility. This facility is targeting commercialization in short order, with the hope to bring “next-generation American-made EV battery packs” to market.

Let’s dive into what to make of this announcement — and whether this is a thesis-changing factor for investors to consider.

MULN Stock Soars on Operational Update

Mullen noted the following in its press release:

“The operationalization of the plant includes a series of planned stages which began with facility preparations and quickly transitioned to the move and installation of battery assembly line equipment. The phase one project culminated in the successful startup, debugging, and early-stage commissioning of the initial two battery assembly lines.”

So, when it comes to this update, more work will need to be done and this will likely remain a capital-intensive process. However, the fact that Mullen may be approaching commercialization for its battery pack production does give investors and speculators a key catalyst to latch onto. The company’s hope is to have its production line operating by early 2025. Further, Mullen expects to staff this line with more than 200 workers when the time comes.

Certainly, Mullen’s approach to on-shoring battery pack production is intriguing. There are also some geopolitical reasons why this move could be compelling for certain investors looking for an EV sector rebound. But Mullen has continued to tread water, and its cash burn and balance sheet remain concerning to most fundamentals-oriented investors.

That said, there is a speculative element to MULN that won’t go away. The fact that shares of Mullen are seeing this move higher today speaks to the investor base that continues to closely follow this stock.

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On the date of publication, Chris MacDonald 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.