Mullen Automotive Stock Forecast: MULN revs up as CES 2024 gets underway

Mullen Automotive stock gained nearly 15% on Tuesday before closing a little below 10%.
MULN stock appears to be at the beginning of a technical rally.
CES 2024 began on Tuesday and runs through Friday.
Mullen unveiled its Mullen Five RS crossover at the event.

Clay Webster FXStreet

Mullen Automotive (MULN) stock clocked in with its best performance of the year so far with a 9.8% gain on Tuesday. MULN surged nearly 15% earlier in the session as the underdog electric vehicle maker unveiled its Mullen Five RS vehicle at Las Vegas’ 2024 Consumer Electronics Show (CES) before backtracking.

The CES is the premier venue for all things consumer tech, and Mullen was excited to show off a raft of its newest vehicles alongside other more well-known manufacturers like Mercedes-Benz and Honda.

Mullen stock news: Mullen Five debuts at CES 2024

The Mullen Five crossover, the company’s first foray in the passenger electric vehicle (EV) market, won’t be released to the public until 2025 at the earliest, but already Mullen is showing off its high-performance version.

The Mullen Five RS boasts top speeds of more than 200 MPH and acceleration of 0 to 60 MPH in less than two seconds. The crossover also comes equipped with more than 1,000 horsepower.

In addition to the Mullen Five RS, the electric automaker will show off its two commercial vehicles already in production. These are the Mullen One electric delivery van and the Mullen Three electric chassis semi-truck cab.

The Bollinger 1 SUV, Bollinger 2 pickup truck and the Bollinger 4 semi-truck chassis cab will also be on display at the Las Vegas Convention Center through Friday, January 12.

Mullen announced on Monday that it has applied for a $50 million grant that would be used for equipment to produce more efficient battery packs for its vehicles. The Department of Energy is issuing grants as part of its $3.5 billion Funding Opportunity for Battery Materials initiative that is part of the Biden administration’s bipartisan infrastructure bill.

Mullen Automotive FAQs

What is Mullen Automotive?

Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.

Who is the team behind Mullen Automotive?

David Michery has been the company’s CEO since he founded and incorporated the company in 2014. The existing company came from the merging of CODA Automotive and Mullen Motor Cars through acquisition. Michery is joined by Chief Financial Officer Jonathan New, Chief Commercial Officer John Schwegman and President of the Automotive Division Calin Popa.

What vehicles does Mullen Automotive currently offer?

Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.

Why does MULN stock trade for such a low share price?

Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.

Mullen stock forecast

Even before Tuesday's surge in the MULN stock price level, the EV company's share price was showing signs of bullishness. On Monday, the 9-day Simple Moving Average (SMA) crossed above its 21-day counterpart. This is evidence that momentum is building for the long discarded penny stock.

Mullen's reverse stock split in December has met with renewed interest in the automaker among traders, though much of the market is still wary that the automaker will need to raise further equity funding to carry out its strategy. Now bulls will need to push through resistance in the area surrounding $18. This is where rallies met their demise on September 21 and 29. Support arrives at $8.

MULN daily chart

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.

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