MULN Stock Forecast: Mullen Automotive extends losses as EV Delivery Van race heats up

NASDAQ:MULN fell by 1.80% during Wednesday’s trading session.
The EV Van race is heating up with Canoo and Rivian as challengers.
Rivian announces it is working on a new cost-cutting plan.

Stocks Reporter FXStreet

NASDAQ:MULN dropped lower for the third consecutive session as some big news from a couple of EV rivals has derailed Mullen’s bullish momentum. On Wednesday, shares of MULN fell by a further 1.80% and closed the trading session at $1.09. It was another volatile day for stocks as all three major indices closed the day in the red. The CPI figure for June came in higher than expected with a 9.1% year over year increase from 2021. As a result, the Dow Jones fell by 208 basis points, the S&P 500 sank by 0.45%, and the NASDAQ inched lower by 0.15% during the session.

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Mullen’s announcement of a partnership with Amazon (NASDAQ:AMZN) delivery partner Delpack Logistics was a breath of fresh air for the EV startup. This firmly places Mullen in direct competition with Rivian (NASDAQ:RIVN) who has a deal to make 100,000 electric delivery vans for Amazon itself. On Tuesday, Canoo (NASDAQ:GOEV) announced it had signed an agreement for up to 10,000 electric vans for WalMart (NYSE:WMT). The electric delivery van race is just heating up, and these three EV startups are vying for share of a relatively uncharted market.

Mullen stock price

Rivian also announced that it would be releasing a cost-cutting plan to its staff on Friday. It is believed the plan will include cutting at least 5% of its staff, although other measures have yet to be released. On Wednesday, Canaccord Genuity initiated coverage of the stock and provided a Buy rating for Rivian, with a price target of $61.

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