Mullen Automotive Stock Forecast: MULN bounces 34% on patent filing
- Mullen has filed a patent for an Energy Management Module.
- The EMM reduces demand on the battery and extends range life.
- MULN stock jumped 34% in Friday's premarket.
- Mullen stock price lost 5.8% on Thursday to hit all-time low.
Mullen Automotive (MULN) stock has gained more than 34% to $0.1139 in Friday's premarket on the back of a new patent filing released late Thursday. It seems that Mullen's R&D joint venture has developed an Energy Management Module (EMM) that can increase an electric vehicle's range by 60% to 70%. The news comes at the right time for Mullen since its stock price hit a new all-time low on Thursday.
Mullen Automotive stock news
Mullen's EMM technology comes by way of its 51% stake in MAEO, aka Mullen Advanced Energy Operations. That entity is a joint venture with Global EV Technology, the company who invented the EMM. Global EV Technology is the legal entity for serial inventor Lawrence Hardge, who has over 120 prototypes, trademarks and patents to his name.
Mullen filed a provisional patent and intends to use the EMM for both its own vehicles and license it to other EV makers.
“Seeing the previous EMM test results conducted by Element, along with Global EVT testing, and correlating that with testing by our engineers, we believe this technology is a perfect fit for Mullen’s EV product lineup as well as the advancement in EV technology for the overall automotive industry,” said CEO David Michery. “Mullen Advanced Energy Operations plans on licensing this technology to anyone who uses an electric vehicle.”
If the technology works out and Mullen receives a patent, then MAEO would become another business segment next to Mullen's planned extensive vehicle line-up. Mullen has already tested the EMM in its Class 1 EV cargo van, and the company said it raised the delivery vehicle's range by 75% to 186 miles. That vehicles was outfitted with a 42-KWh battery pack.
Third-party testing by Element Materials Technology showed the EMM providing a 60% increase in range to an unspecified "high-volume OEM electric vehicle" that pushed up that vehicle's range from 269 miles to 431 miles.
Source: Mullen Automotive
Mullen stock forecast
Mullen stock lost 5.8% on Thursday to reach a new all-time low at $0.08. The penny stock has been under plenty of pressure despite its announcement in late March that Randy Marion commercial dealership was now marketing its cargo vans across the United States. Tesla (TSLA) CEO Elon Musk's announcement earlier this week that his company will continue to cut prices has also put pressure on all EV competitors, most of which are not yet profitable.
Since February MULN stock has been held in place by a descending 21-day moving average, and only infrequently has the stock even closed above its 9-day moving average. Both moving averages are encircling $0.10 at the moment. Though the Moving Average Convergence Divergence (MACD) indicator crossed over bullishly on March 30, the stock has continued selling off. The company has until the second half of the year to complete a reverse stock split that will push the share price above $1 – a NASDAQ listing requirement.
MULN daily chart
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
