MULN Stock Alert: Mullen Signs New Boston-Area Dealer Partner


  • Upstart EV manufacturer Mullen Automotive (MULN) slipped over 2% despite seemingly good news.
  • The company signed a franchise contract with Eco Auto, a Boston-area dealer dedicated to EVs.
  • Despite the company’s best efforts, MULN stock continues to tumble.
MULN stock - MULN Stock Alert: Mullen Signs New Boston-Area Dealer Partner

Source: Ringo Chiu /

Although circumstances have not been favorable to upstart electric vehicle (EV) manufacturer Mullen Automotive (NASDAQ:MULN), the company continues to make its best efforts. In the latest development, management signed a franchise agreement with Eco Auto, a dealership located in Boston, Massachusetts, that’s focused on EVs. Still, very little seems to be clicking for MULN stock, which slipped on the news.

According to a Seeking Alpha report, Eco Auto is a zero-emissions commercial vehicle dealership. Per the release, as the EV maker’s newest franchise dealer, “Eco Auto will cover national fleet opportunities for the company’s full line of commercial EVs with particular focus on the regional New England area.”

In terms of quantities, the dealership’s initial orders will include 10 Mullen One vehicles (which are Class 1 electric cargo vans) and three Mullen Three vehicles labeled as Class 3 electric-powered cab forward trucks.

According to Mullen CEO David Michery, “[t]he New England area is a key Northeast hub for commercial fleet companies and one we are excited to enter.”

Writing May Be on the Wall for MULN Stock

On paper, the contract is huge for MULN stock. The Eco Auto order signifies confidence that Mullen will remain in business to support its EVs. Nevertheless, the fact that MULN stock has been choppy in the first few hours of Monday’s session may point to deeper financial concerns.

First, the Mullen One features an MSRP of $34,500. On the other hand, the Mullen Three features an MSRP of $68,500. Even assuming that the EV manufacturer can recognize the entirety of the price as revenue, the amount totals to only $550,500. That’s not enough to move the needle.

In fiscal year 2023 (ended September), Mullen generated revenue of $370,000 with a net loss of $972.25 million. And as of the quarter that ended March 2024, the company incurred a retained loss of approximately $2.06 billion.

As of the latest read, the company’s free cash flow came in at $54.19 million below parity. On the balance sheet, the company only has $22.38 million of cash and its equivalents. Without more substantive news, the dilution risk for MULN stock is high, likely contributing to its volatility.

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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 Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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