- Mullen Automotive stock lost 11.5% to close at $0.2277 on Tuesday.
- MULN stock has retreated nearly 22% in the last five sessions.
- The automaker has spent $120 million closing its acquisition of Electric Last Mile Solutions.
- MULN is now hovering just above its all-time low at $0.21.
Mullen Automotive (MULN) desperately needs a new catalyst to emerge in order to boost its share price. Since jockeying up to $0.61 in late October on the back of its Electric Last Mile Solutions (ELMS) acquisition, MULN stock has lost about two-thirds of its market cap in just one month.
On Tuesday Mullen Automotive stock dropped a severe 11.5%. This took place without any negative news event or a major sell-off in growth stocks. In fact, both the tech-heavy Nasdaq and the more balanced S&P 500 closed up about 1.4% on the day.
Mullen Automotive stock news: David Michery hyped up
Mullen’s recent moves have not satisfied the legion of fans who have invested in the penny stock in hopes of it becoming the next Tesla (TSLA). Bulls like to contend that Mullen Automotive CEO David Michery is the next Elon Musk, but the company has been in startup mode for a decade now as it is yet to produce a consumer vehicle at commercial scale.
David Michery went on the Stock Day podcast on November 18 to talk about some of the company’s recent successes. The CEO talked enthusiastically about Mullen’s patented PERSONA technology, which utilizes facial recognition software to automatically personalize driving settings for every driver.
"I believe PERSONA will be a big hit,” gushed Michery. “It is next level technology."
David Michery also talked about finalizing the acquisition of Electric Last Mile Solutions’ assets and factory in Mishawaka, Indiana, this month. The acquisition cost about $120 million and gives Mullen the ability to produce about 50,000 vehicles per year on the premises as well as having access to ELMS’ patented delivery vehicle designs.
Currently, Mullen Automotive is carrying out its Strikingly Different tour. It began earlier this month in Los Angeles and then moved on to Las Vegas. Test drives are being given at racetracks for those interested in making a deposit on a Mullen FIVE.
Further tour dates took place mid-month in Dallas and Houston. In December the test driving tour will finish with dates in Memphis, Miami, Atlanta and Charlotte. Before the tour began, Mullen already had 25,000 reservations for the FIVE and is yet to state how many more its received during the tour.
FIVE is a SUV crossover looks a bit like a Tesla Model 3 on steroids. The base price is $55,000 for the vehicle, which boasts 325 miles of range, but final pricing will likely push the base price up by a wide margin. It costs just $100 to secure a refundable reservation. Mullen says full production will begin in the fourth quarter of 2023 and that deliveries will commence in the second quarter of 2024.
During the Stock Day interview, David Michery was asked how he planned to get the MULN stock price back above $1. He responded that the company would have quite a few announcements coming out over the next “two to three weeks.”
MULN stock forecast: Key support at $0.21
Mullen stock has been shifting lower since October 25, ignoring a short period rebounding in the first half of November. MULN stock has dropped nearly 22% in just five sessions, and Tuesday’s drop was a big part of that. Mullen’s share price has closed below its open on seven consecutive sessions.
There are two obvious scenarios that might play out in the next several days. First, MULN could break through support at $0.21. This support was laid down on October 18 and 19, and it would not be too surprising if bulls decided this was once again a good entry point for a rally. Resistance would then come at the 9-day moving average near $0.28 and the 21-day moving average near $0.345.
The second option, of course, is that MULN drops through support and keeps falling. Since $0.21 is the former all-time low, then Mullen would produce a new all-time low. Where exactly is anyone’s guess, but it is important to know that at the end of the most recent quarter, Mullen has assets valued somewhere north of $200 million due to the ELMS acquisition. Currently, the market cap is at $130 million.
MULN 1-day stock chart
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